HomeMy WebLinkAbout2009-098-10/27/2009-CONCERNING IMPLEMENTATION OF STANDARDS CREATED BY AMENDMENTS TO THE PUBLIC UTILITY REGULATORY POLICI I
RESOLUTION 2009-098
OF THE COUNCIL OF THE CITY OF FORT COLLINS
CONCERNING IMPLEMENTATION OF STANDARDS CREATED BY AMENDMENTS TO
THE PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978 AND CONTAINED IN
THE ENERGY INDEPENDENCE AND SECURITY ACT OF 2007
WHEREAS, the City's electric utility enterprise, Fort Collins Utilities (the "Utility"), is
subject to the Public Utility Regulatory Policies Act of 1978 ("PURPA") found at 16 United States
Code §2601, et. seg.; and
WHEREAS, in 1993, City Council considered and passed Resolution 1993-150, wherein
Council considered a standard prescribed by the then amended PURPA and approved and adopted
an Integrated Resource Plan; and
WHEREAS,in 2006,City Council considered and passed a resolution(Resolution 2007-066)
wherein Council considered five standards that addressed the following topics: net metering, fuel
sources, fossil fuel efficiency, time-based metering and interconnection and adopted the written
determinations made by Utility staff; and I
WHEREAS, in 2007, PURPA was further amended by the enactment of the Energy
Independence and Security Act of 2007 ("the 2007 Act")that added four new standards to address
the following topics: integrated resource planning, rate design modifications to promote energy
efficiency investments, smart grid investment and smart grid information; and
WHEREAS, a copy of the relevant sections of the 2007 Act is marked as Exhibit "A",
attached hereto and incorporated herein by this reference; and
WHEREAS,the 2007 Act also contains a standard to be considered by the City that does not
constitute an amendment to PURPA, the purpose of which is to encourage waste energy recovery
projects that generate net excess power; and
WHEREAS,the process of reviewing and considering the new federal standards was initiated
by the Utility by virtue of a memorandum dated December 16, 2008, from Light and Power
Operations Manager Steve Catanach to the Mayor and City Council Members as shown in Exhibit
"B", attached hereto and incorporated herein by this reference; and
WHEREAS, pursuant to PURPA and the 2007 Act, if a utility determines that it is not
appropriate to implement a particular standard, it may do so as long as it sets forth its reasons in a
writing that is made available to the public; and
WHEREAS,Utility staff has reviewed each of the new federal standards required by the 2007
Act, considered and made determinations regarding each standard, and made recommendations to
the City Council in a staff report that explains in detail how the Utility meets or exceeds each
standard or is working in a joint effort with Platte River Power Authority ("PRPA") to meet or
exceed the given standard as shown in Exhibit "C" ("Staff Report"), attached hereto and
incorporated herein by.this reference; and
WHEREAS, at its regular meeting on October 7, 2009, the Electric Board considered the
Staff Report and a staff presentation and voted unanimously to recommend to the City Council to
pass a resolution adopting the determinations made by Utility staff in the form substantially
contained in the Staff Report, and
WHEREAS, in accordance with the procedural requirements for consideration and
determination of certain standards contained in PURPA, public notice of City's Council's
consideration of the.PURPA standards and one 2007 Act standard was published on Sunday,October
4, 2009; and
WHEREAS, the written determinations made herein by the City Council are based upon
findings included in the Staff Report and upon evidence presented at the hearing, and will be
hereafter available to the public in the office of the City Clerk; and
WHEREAS,the City Council desires to formally adopt the recommendations made by Utility
staff and the Electric Board regarding each of the PURPA standards as well as the 2007 Act
standard.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. Upon review and consideration of each of the federal standards as outlined
by staff in Exhibit C, the City Council hereby finds that it is in the best interests of the City of Fort
Collins to adopt the determinations made by staff in the Staff Report.
Section 2. That this review of the PURPA standards, as well as the 2007 Act standard
related to waste energy recovery projects, consideration of each standard, public notice of hearing
and public hearing and the passage of this Resolution complete the consideration and determination
process required by PURPA.
Passed and adopted at a regular meeting of4Cocilf the City of Fort Colli this 27th
day of October A.D. 2009.
ATTEST:=
City Clerk
EXHIBIT A
Appendix A
Excerpts of the
Energy Independence and Security Act of 2007
Table of Contents, Effective Date, and
Section 532 PURPA Standards
ENERGY INDEPENDENCE AND SECURITY ACT
OF 2007
August 11. 2008--Final 114 EISA Standards Manual
121 STAT. 1492 Pl,'BLIC LAW 110-140—DEC. 19, 2007.
Public Law 110-140
110th Congress
An Act
To move the United States toward greater energy independence and security, to
Dec. 19:2007 increase the production of dean renewable fuels, to protect consumers, to increase
the efficiency of products. buildings, and vehicles, to promote research on and
[H.R.61 deploy greenhouse gas capture and storage options, and to improve the energy
perfon:tance of the Federal Government,and for other purposes.
Be it enacted by the Senate and House of Representatives of
Energy the United States ofAmerica in Congress assembled,
Independence
and Security Act SECTION 1.SHORT TITLE;TABLE OF CONTENTS.
cf 2007.
42 USC 17001 (a) SHORT TITLE.—This Act may be cited as the "Energy
no, Independence and Security Act of 2007'.
(b) TABLE OF CONTENTS.—The table of contents of this Act
is as follows'
Sec. L Short title;table of contents.
Sec. 2. Definitions.
Sec 3. Relationship w other law.
TITLE I—ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL
ECONOMY
Subtitle A—Inceased Corporate Average Fuel Economy Standards
Sec. 101. Short title.
Sec. 102. Average fuel econuny standards for automobiles and certain other vehi-
cles.
Sec. 103. Definitions.
Sec. 104. Credit trading program.
Sec. 105 Consumer information.
Sec. 106. Continued applicability of existing standards.
Sec. 107. National Academy of Sciences studies_
Sec. 108. National Acadeiny of Sciences study of medium-duty and heavy-duty
truck fuel ecoromv.
Sec. 109. Extension of flexible.`uel vehicle credit program.
Sec. 110. Periodic review of accuracy of fuel economy labeling procedures.
Sec. i I l.. Consumer tire information.
Sec. 112. Use of civil penalties for research and development.
Sec. 113. Exemption front separate calculation requirement.
Surn-cle B—Improved Vehicle Technology
Sec. 131. Transportation electrification.
Sec. 132. Domestic man'afacturine convc!sion grant progra:a.
Sec. 133. Inclusion of electrir drive in Energy Policy Act of 1992.
Sec. 134. Loan g,,iarantees for fuel-efficient automobile parts manufacturers.
Sec. 135. Advanced b;Ct811 15811 guarantee Inro�rzu�.
Sec. 136. Advanced technology vehicles rranafacturing incentive program.
Suhtlle C—Federal Vehicle Fleets
Sec. 1.1L Federal ve:vcle feet'
Sec. 142. Federal fleet conservation requirements.
August 11, 2008 --Finaf. 115 EISA Standards Manual
i
PUBLIC LAW 110-1.40-DEC. 19, 2007 121, STAT. 1493
TITLE H-ENERGY SECURITY THROUGH INCREASED PRODUCTION OF
BiOFUELS
Subtitle A-Renewable Fuel Standard
Sec. 201. Definitions.
Sec. 202. Renewable fuel standard.
Sec. 203. Study of impact of Renewable Fuel Standard.
Sec. 204. Environmental and resource conservation impacts.
Sec. 205. Biomass based diesel and biodieset labeling.
Sec. 206. Study of credits for use of renewable electricity in electric vehicles.
Sec. 207. Grants for production of advanced biofuols.
Sec. 208. Integrated consideration of water quality in determinations on fues and
fuel additives.
Sec. 209. Anti-backsliding-
Sec. 210. Effective date,savings provision, and transition rules.
Subtitle II-Biofuels Research and Developrrent
Sec. 221. Biodiesel.
Sec. 222. Bw as.
Sec. 223. Grants for biofuel production research and development in certain States.
Sec. 224. Biorefinery energy efficiency.
Sec. 225. Study of optimization of flexible fueled vehicles to use E-85 fuel.
Sec. 226. Study of engine durability and performance associated with the use of
bio&esel.
Sec. 227. Study of optimization of biogas used in natural gas vehicles.
Sec. 228. Algal biomass.
Sec. 229. Biofuels and biorefinery information certm.
Sec. 230. Cellulosic ethanol and Biofuels research.
Sec. 231. Bioenergy research and development,authorization of appropriation.
Sec. 232. Environmental research and development.
Sec. 233. Bioenergy research centers.
Sec. 234. University based research and development grant program.
Subtitle C-Biolbels Infrastructure
Sec. 241.. Prohibition on fi-anchiso agreement restrictions related to renewable fuel
infrastructure.
Sec. 242. Renewable fuel dispenser requirements.
Sec. 243. Ethanol pipeline feasibility study.
Sec. 244. Renewable fuel infrastructure grants.
See. 245. Study of the adequacy of transportation of domestically-produced renew-
able fuel by railroads and other modes of transportation-
Sec. 246. Federal feet fueling centers.
Sec. 247. Standard specifications for biodiesel.
Sec. 248. Biofuels distribution and advanced biufuels infrastructure.
Subtitle D-Ervironmental Safeguards
Sec. 251. Waiver for fuel at fuel additives.
TITLE HI-ENERGY SAVINGS THROUGH IbIPROVED STANDARDS FOR
APPLIANCE AND LIGHTING
Subtitle A-Appliance Energy Efficiency
Sec. 301. External power supply efficiency standards.
Sec. 302. Updating appliance test procodures.
Sec. 303- Residential boilers.
Sec. 304. Furnace fan standard process.
Sec. 305. Improving schedule for standards updating and ciarifving State authmity.
Sec. 306. Regional standards fm furnaces, central air conditioners• and heat
pum7 s.
Sec. 307. Procedure(or prescribing new m amended standards.
Sec. 308. Expedited rule,=gs-
Sec. 309. Battery chargers.
Sea 310. Standbv mode.
Sec. 311. Energy standards for home appliances.
Sec. 312. Walk-in coolers and walk-in freezers.
Sec. 313. Electric motor et::c:encv standards.
Sec. 314. Standards for single package vertical air cundiiiuuers and heal pumps.
Sec. 315. Improved energy efficiency for appliances and huddingsor m or c:imaies.
Sec. 316. Technical corrections.
Subtitle B-Lighting Ene dry Efficiency
Sec 321. Efficient light bulbs.
August 11, 2008 --Final 116 EISA Standards Manual
121 STAT. 1494 PUBLIC LAW 110-140-DEC. 19, 2007
Sec. 322. Incandescent reflector lamp efficiency standards.
Sec. 323. Public building energy efficient and renewable energy systems.
Sec. 3244 Metal halide lamp fixtures.
Sec. 325. Energy efficiency labeling for consumer electronic products.
TITLE;IV-ENERGY SAVINGS IN BUILDINGS LAND INDUSTRY
Sec. 401. Definitions.
Subtitle A-Resideetial Building Efficiency
Sec. 411. Reauthorization of weatberization assistance program.
Sec. 412. Study of renewable energy rebate programs.
Sec. 413. Energy code improvements applicable to manufactured housing.
Subtitle B-High-Performance Commercial Buildings
Sec. 421. Commercial high-performance green buildings.
- Sec. 422. 'Zero Net Energy(commercial buildings Initiative.
Sec. 423. Public outreach.
Subtitle C-High-Performance Federal Buildings
Sec. 431. Energy reduction goals for Federal buildings.
Sec. 432. Management of energy and water efficiency in Fedo-al building:.
Sec. 433. Federal buildin energy efficiency performance standards.
Sec. 434. Management oNederal building efficiency.
Sec. 435. Leasing.
Sec. 436. Hillb-performance green Federal buildings.
Sec. 437. Federal green building performance.
Sec. 438. Storm water runeff requirements for Federal development projects.
Sec. 439. Cost-effective technology acceleration program.
Sec_ 440. Authorization of appropriations.
Sec. 441. Public building life-cycle costs.
Subtitle D-Industrial Energy Efficiency
Sec. 45L Industrial energy efficiency.
Sec. 452. Energy-intensive industries program.
Sec. 453. Energy efficiency for data center buildings.
Subtitle E--Healthy High-Perfurmance Schools
Sec. 461. Healthy high-performance schools.
Sec. 462. Study on indoor environmental quality in schools.
Subtitle F-Institutional Entities
Sec. 471. Energy sustainability and efficiency grants and loane.for insti C'tions.
Subtitle G-Public and Assisted Housing
Sec, 481. Application of International Energy Conservation Code to public and as-
sisted housing.
Subtitle H-General Pro�risions
Sec. 491. Demonstration proiect. .
Sec. 492. Research and development.
Sec. 493. Environmental Protection Agency denionst-ration grwA program for local
governments.
Sec. 494. Green Building Ad%isor_v Committee.
Sec. 495. Advisory Committee on Energy Efficiencv Finance.
TITLE V-ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS
Subtitle A-United States Capitol Complex
Sec. 501. Capitol complex photovoltaic roof feasibility studies.
Sec. 502. Capitol complex E-85 refueling station.
Sec. 503. Energy and environmental measures in Capitol complex master p'an.
Sec. 504. Promoting riaxirnum efficiency in operation of Capitol oo ver plant.
Sec. 505. Capitol power plant carbon dioxide emissions feasibility stutlp and dem,
. castration projects.
Subtitle B---Enorgy SaNdngs Perfarnuuice Contracting
Sec. 511. Authority to enter into contracts;repots.
Sec. 512. Financing Flexibility.
Sec. 513. Promoting long-teen: energy savings perfomance contracts and verifying
savings.
August 11, 2008--Final 117 EISA Standards Manual
PUBLIC LAW 110-140-DEC. 19, 2007 121.STAT. 1495
Sec. 514. Permanent reauthorization.
Sec. 515. Definition of energy savings.
Sec. 516. Retention of savings.
Sec. 517. Training Federal contracting officers to negotiate energy efficiency con-
tracts.
Sec. 518. Study of energy and cost savings in ronbuilding applications.
Subtitle C-Energy Efficiency in Federal Agencies
Sec. 531. Installatior.of photovoltaic system at Department of Energy headquarters
building.
Sec. 522. Prohibition on incandescent lamps by Coast Guard.
Sec. 523. St.andried relating to solar hot water heaters.
Sec. 524. Federally-proeurcd appliances with standby power.
Sec. 525. Federal procurement of energy efficient products.
Sec. 526. Procurement and acquisition of alternative fuels.
Sec. 527. Government efficiency status reports.
Sec. 528. ON113 government efficiency reports and scorecards. -
See. 529. Electricity sector demand response.
Subtitle D-Energy Efficiency of Public Institutions
Sec. 531. Reauthorization of State energy programs.
Sec. 532. Utility energy-efficiency programs.
Subtitle E-Energy Efficiency and Conservation Block Grants
Sec. 541. Definitions.
Sec. 542. Energy Efficiency and Conservation Block Grant Program.
Sec. 543. Allocation of funds.
Sec. 544. Use of funds.
Sec. 545. Requirement-, for eligible entities.
Sec. 546. Competitive grants.
Sec. 547. Review and evaluation.
Sec. 543. Funding,
TITLE Vl-ACCELERXfFD RESEARCH AND DEVELOPMENT
Subtitle A-Solar Energy
Sec. 601. Short title. '
Sec. 602. Thermal energy sterage research and development program.
Sec. 603. Concentrating solar power commercial application studies.
Sec. 604. Solar energy curriculum development and certification grants..
Sec. 605. Daylighting systems and direct solar light pipe technology.
Sec. 606. Solar Air Conditioning Research and Development.Program.
Sec. 607. Photovoltaic denwns(.racien program.
Subtitle B-Geothermal Energy
Sec. 671. Short title.
Sec. 612. Definitions.
Sec. 613. Hydrother:nal research and development.
Sea 614. General eeothemm�l systems research and development.
Sec. 615. Enhances geothermal systems research and development.
Sec. 616. Geothermal energy production from oil and gas fields and recovery and
production of geopressured gas resources.
Sec. 617. Cost sharing-and proposal evaluation.
Sec. 618. Center for geothermal technology transfer.
Sec. 619, GeoPowering America.
Sec. 620. Educational pilot program.
Sec. 621_ Repots.
Sec. 622. Applicability of other lav:s.
Sec 623. Authorization of appropriations.
Sec. 624. International geothermal energy'development..
Sec. 625. High cost region geothen,al energy grant program.
Su Ltide C-Marine and Hydrokinetic Renewable Energy Technologies
Sec. 63' Short title.
Sec 632. Definition.
Sec. 633. Marine and hvcrokinetic renewable energy research and development..
Sec-4. National Mariee Renewable Euergy Research, Development, and Deny
onsfsation Centers.
Sec. 635. Applicabilitv of ocher laws.
Sec. 636. Autharization of appropriations.
August 11. 2008--Final 118 EISA Standards Manual
121 STAT. 1496 PUBLIC LAW 110-140-DEC. 19, 2007
Subtitle D-Energy Storage for Transportation and Electric Power
Sec. 641. Energy storage competitiveness.
Subtitle E-Miscellaneous Provisions
Sec. 651. Lightweight materials research and development.
Sec. 652. Commercial insulation demonstration program.
Sec. 653. Technical criteria for dean coal power Initiative.
Sec. 654. H-Prize.
Sec. 655. Bright Tomorrow Lighting Prizes.
Sec. 656. Renewable Energy innovation manufacturing partnership.
TITLE VH-CARBON CAPTURE AND SEQUESTRATION
Subtitle A-Carbon Capture and Sequestration Research,Development,and
Demonstration
Sec. 701. Short title.
Sec. 702. Carbon capture and sequestration research,development,and demonstra-
tion program.
Sec. 703. Carbon capture.
Sec. 704. Review of large-scale programs.
Sec. 705. Geologic sequestration training and research.
Sec. 706. Relation to Safe Drinking Water Act.
Sec. 707. Safety research.
Sec. 708. University based research and development.grant program.
Subtitle B-Carbon Capture and Sequestration Assessment and Framework
Sec. 711. Carbon dioxide sequestration capacity assessment.
Sec. 712. Assessment of carbon sequestration and methane and nitrous oxide emis-
sions from ecosystems.
Sec. 713. Carbon dioxide sequeslaacion inventory.
Sec. 71.1. Framework for geological carbon sequestration on public land.
TITLE VIII-IMPROVED MANAGEMENT OF ENERGY POLICY
Subtitle A-Management Improvements
Sec. 801. National media campaign.
See. 802, Alaska Natural Gas Pipeline administration.
Sec. 803. Renewable energy deployment.
Sec. 804. Coordination of planned refinery outages.
Sec. 805. Assessment of resources.
Sec. 806. Sense of Congress relating to the use of renewable resources to generate
energy:
Sec. 807. Geothermal assessment,exploration information,and priority activities.
Subtitle B-Prohibitions on Market Manipulation and False Information
Sec. 811. Prohibition on market manipulation.
Sec. 812. Prohibition on false information.
Sec. 813. Enforcement by the Federal Trace Commission.
Sec. 8I4. Penalties.
Sec. 8I5. Effect on other laws.
TITLE IX-INTERNATIONAL ENERGY PROGRAMS
Sec. 901. Definitions.
Subtitle A-Assistance tc Promote Clean and Efficient Energy Technologies in
Foreign Countries
Sec. 91 L Urited States assistance for developing countries.
Sec. 912. United States exports and outreach programs for India,China, and other
_ countaies.
Sec. 913. United States trade missions to encourage private sector trade and in-
vestment..
Sec. 914. Actions by Overseas Private Investment Corporation.
Sec. 915. Actions by United S,tates'frace and Development Agency.
Sec. 916. Deploymrent of international clear, and efficient energy technologies and
investment m in global energy arkets.
Sea 917. United States-Israel energy cooperation..
Subtitle B-InlanMional Clean Energy Foundation
Sea 921. Definitions.
August 11, 2008 Final 119 EISA Standards Manual
PUBLIC LAW 110-140-DEC. 19, 2007 121 STAT. 1497
Sec. 922. Establishment and management of Foundation.
Sec. 923. Duties of Foundation.
Sec. 924. Annual report..
Sec. 925. Powers of the Foundation; related provisions.
Sec. 926. General personnel authorities.
See. 927. Authorization of appropriations.
Subtitle C-Miscollaneous Provisions
Sec. 931. Energy diplomacy and security .ithin the Department of State.
Sec. 932. National Security Council reorganization.
Sec. 933. Annual national energy security strategy report.
Sec. 934. Convention on Supplementary Compensation for Nuclear Damage contin-
gent cost allocation.
Sec. 935. Transparency in extractive industries resource payments.
TITLE X-GREEN JOBS
Sec. 1001. Short title.
Sec. 1002. Energy efficiency and renewable energy worker training program.
TITLE XI-ENERGY TRANSPORTATION AND INFRASTRUCTURE
Subtitle A-Department of Transportation
Sec. 1101. Office of Ciimate Change and Environment.
Subtitle B-Railroads -
Sec. 1111. Advanced technology locomotive grant pilot program.
Sec. 1112. Capital grants for class II and class III raihroads.
Subtitle C-Marine Transportalion
Sec. 1121. Short sea transportation initiative-
Sec. 1122. Short.sea shipping eligibility for capital constrvction fund.
Sec. 1123. Short sea transportation report.
Subtitle D-Highways
See. 113L Increased Federal share for CMAQ projects-
. Sec. 1132. Distribution of rescissions.
Sec. 1.133. Sense of Congress regarding use of complete streets design techniques.
TITLE XII-SD'IALI,BUSINESS ENERGY PROGRAMS
Sec. 1201. Express loans for renewable energy and energy efficiency.
Sec. 1202. Pilot program for reduced 7011 fees for purchase of energy efficient tech-
nolog es.
Sec. 1203. Small business energy efficiency.
Sec. 1204. Larger 504 loan limits to help business develop energy efficient tech-
nologies and purchases.
See. 1205. Energy saving debentures.
Sec. 1206. InvestmeaLs in energy saving small businesses.
Sec. 1207. Renewable fuel capital investment company.
Sec. 1208. Study and report.
TITLE X1II-SAIART GRID
Sea 1301. Statement of policy on modernization of electricity_rid.
Sec 1302. Smart grid system report.
Sec. 1303. Smart grid advisory commitlee and smarL grid task force.
Sec. 1304, Smart grid technology research,development,and demonstration.
Sec- 1305. Smart grid intoroperability framework.
Sec. 1306. Federal matching fund for smart livid investment Costs.
Sec. 1307. State consideration of smart grid.
Sec 1308. Study of the effect of private wire laws on the development of combined
heat and power facilities.
Sec. 1309. DOE study of security attributes of smart grid.systems.
TITLE Xlv-pool,AND SPA SAFETY
Sec- 1401. Short title.
Sec. 1402. Findings.
Sec. 1403. Definitions.
Sec. I404. Federal swimming pool and spa drain cover standard.
Sec. 1405. State swimming pool safe.Ly grant pro,,=m.
Sec. 1.406. Minimum State law requirements.
Sec. 1.107. Education program:-
August 11, 2008-- Final 120 EISA Standards Manual
121 STAT. 1498 PUBLIC LAW- 110-140—DEC. 1.9, 2007
Sec. 1408. CPSC report.
TITLE XV—REVL:NUE PROVISIONS
Sec. 1500. Amendment of 1986 Code.
Sec. 1501. Extension of additional 0.2 percent FUTA surtax.
Sec. 1502. 7-vear amortization of geological and geophysical expenditures for cer-
tain major integrated oil companies.
TITLE XVI—EFFECTIVE DATE
Sec. 1601. Effective sate.
42 USC 17001. SEC.2.DEFINITIONS.
In this Act:
(1) DEPARTNIENT.—The term "Department" means the
Department of Energy. .
(2) INSTITUTION OF HIGHER EDUCATION.—The term "institu-
tion of higher education' has the meaning given the term
in section 101.(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a)).
(3) SECRETA1ty.—The term "Secretary' means the Secretary
of Energy.
42 USC-17002. SEC.3.RELATIONSHIP TO OTHER LAW.
Except to the extent expressly provided in this Act or an amend-
ment made by this Act, nothing in this Act or an amendment
made by this Act supersedes, limits the authority provided or
responsibility conferred by, or authorizes any violation of any provi-
sion of law(including a regulation), including any energy or environ-
mental law or regulation.
August 11, 2008 --Final 121 EISA Standards Manual
PUBLIC LAW 110-140—DEC. 19, 2007 121 STAT. 1.801
TITLE M-EFFECTIVE DATE
SEC.1601.EFFECTIVE DATE. 2 USC 1824 note.
This Act and the amendments made by this Act take effect
on the date that is 1 day after the date of enactment of this
Act.
Approved December 19, 2007.
n
LEGISLATIVE HISTORY—H.R.6: '
CONGRESSIONAL RFCORD,Vol. 153(2007):
Jan. 18.considered avid passed House. -
June 12-15. 18-21,considered and passed Serate.amended.
Dec 6.House concurred in Senate amendments with amendments.
Dec. 12, 13, Senate considered and concurred in House amendments with an
amendment.
Dec.18. House concurred ii_Senate amendment.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS.Vol.43;2007):
Dec. 19, Presidential remarks.
August 11, 2008 -- Final 122 EISA Standards Manual
PUBLIC LAW 110-140—DEC. 19, 2007 1.21 STAT. 1665
3
Subtitle D—Energy Efficiency of Public
Institutions
SEC.531.RE AUTHORIZATION OF STATE ENERGY PROGRAMS.
Section 365(f) of the Energy Policy and Conservation Act (42
U.S.C. 6325(f) is amended by strikingg "$1.00,000,000 for each of
the fiscal year 2006 and 2007 and $125,000,000 for fiscal year
2008' and inserting "$125,000,000 for each of fiscal ,ears 2007
through 2012".
SEC.532.UTILITY ENERGY EFFICIENCY PROGRAMS.
(a) ELECTRIC UTILTr1Es.—Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (1.6 U.S.C. 2621(d)) is amended
by adding at the end the following:
"(16) INTEGRATED RESOURCE PLANNING.—Each electric
utility shall—
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1.21 STAT. 1666 PUBLIC LAW 110-140—DEC. 19, 2007
"(A) integrate energy efficiency resources into utility,
State, and regional plans;and
"(13) adopt policies establishing cost-effective energy
efficiency as a priority resource.
"(17) RATE DESIGN MODIFICATIONS TO PROMOTE ENERGY -
EFFICIENCY INVESTMENTS.—
"(A) IN GENERAL.—The rates allowed to be charged
by any electric utility shall-
116) align utility incentives with the delivery of
cost-effective energy efficiency;and
"(ii)promote energy efficiency investments.
"(13) POLICY. OPTIONS.—In complying with subpara-
graph (A), each State regulatory authority and each non-
regulated utility shall consider—
"(i) removing the throughput incentive and other
regulatory and management disincentives to energy
efficiency;
"(ii) providing utility incentives for the successful
management of energy efficiency programs;
"(iii) including the impact on adoption of energy
efficiency as 1 of the goals of retail rate design; recog-
nizing that energy efficiency must be balanced with
other objectives;
"(iv) adopting rate designs that encourage energy
efficiency for each customer class;
"(v) allowing timely recovery of energy efliciency-
related costs; and
"(vi) offering home energy audits, offering demand
response programs, publicizing the financial and
environmental benefits associated with making home
energy efficiency improvements, and educating home-
owners about all existing Federal and State incentives,
including the availability of low-cost loans, that make
energy efficiency improvements more affordable.".
(b) NATURAL GAS UTILITIES.—Section 303(b) of the Public
Utility Regulatory Policies Act of 1978 (15 U.S.C. 3203(b)) is
amended by adding at the end the following
"(5) ENERGY EFFICIENCY.—Each natural gas utility shall—
"(A) integrate energy efficiency resources into the plans
and planning processes of the natural gas utility; and
"(13) adopt policies that establish energy efficiency as
a priority resource in the plans and planning processes
of the natural gas utility.
"(6)RATE DESIGN MODIFICA'r'IONS TO PROMOTE ENERGY EFFI-
CIENCY INVESTMENTS.—
"(A) IN GENERAL.—The rates allowed to be charged
by a natural gas utility shall align utility incentives with
the deployment of cost-effective energy efficiency.
"(13) POLICY OPTIONS.—In complying with subpara-
graph (A), each State regulatory authority and each non-
regulated utility shall consider—
"(i)separating fixed-cost revenue recovery from the
volume of transportation or sales service provided to
the customer;
"(ii)providing to utilities incentives for the success-
ful management of energy efficiency programs, such
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PUBLIC LAW 110-140—DEC. 1.9, 2007 121 STAT. 1667
as allowing utilities to retain a portion of the cost-
reducing benefits accruing from the programs;
"(iii) promoting the impact on adoption of energy
efficiency as 1 of the goals of retail rate design, recog-
nizing that energy efficiency must be balanced with
other objectives; and
"(iv) adopting rate designs that. encourage energy
efficiency for each customer class.
For purposes of applying the provisions of this subtitle
to this paragraph, any reference in this subtitle to the
date of enactment of this Act shall be treated as a reference
to the date of enactment of this paragraph.".
(c) CONFORMING AA1lNllh1GNT.-SeCtion 303(a) of the Public
Utility Regulatory Policies Act of 1978 (15 U.S.C. 3203(a)) is
amended by striking"and(4)"inserting"(4), (5),and (6)".
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Appendix B
Excerpts of the
Energy Independence and Security Act of 2007
Smart Grid Sections
Sections 1301 to 1309
`I`ITLE XIII-SMART GRID
SEC. 1301. STATEMENT OF POLICY ON MODERNIZATION OF ELEC- 15 OSC 17351.
TRICI'I'Y GRID.
It is the policy of the united States to support the moderniza-
tion of the Nation's electricity transmission and distribution system
August 11, 2008 -- Final 126 EISA Standards Manual
121 STAT. 1784 PUBLIC LAW 110-140—DEC. 19, 2007
to maintain a reliable and secure electricity infrastructure that
can meet future demand growth and to achieve each of the following,
which together characterize a Smart Grid:
(1) Increased use of digital information and controls tech-
nology to improve reliability, security, and efficiency of the
electric grid.
(2) Dynamic optimization of grid operations and resources,
with full eyber-security.
(3) Deployment and integration of distributed resources
and generation,including renewable resources.
(4) Development and incorporation of demand response,
demand-side resources, and energy-efficiency resources.
(5) Deployment of "smart" technologies (real-time, auto-
mated, interactive technologies that optimize the physical oper-
ation of appliances and consumer devices)for metering, comma-
nications concerning grid operations and status, and distribu-
tion automation.
(6) Integration of"smart" appliances and consumer devices.
(7)Deployment and integration of advanced electricity stor-
age and peak-shaving technologies, including plug-in electric
and hybrid electric vehicles, and thermal-storage air condi-
tioning.
(8)Provision to consumers of timely information and control
options.
(9) Development of standards for communication and inter-
operability of appliances and equipment connected to the elec-
tric grid; including the infrastructure serving the grid.
(10)Identification and lowering of unreasonable or unneces-
sary barriers to adoption of smart grid technologies, practices,
and services.
15 USC 17382. SEC.1302.SMART GRID SYSTEM REPORT.
The Secretary, acting through the Assistant Secretary of the
Office of Electricity Delivery and Energy Reliability (referred to
in this section as the "OEDER") and through the Smart Grid
Task Force established in section 1303, shall, after consulting with
any interested individual or entity as appropriate; no later than
1 year after enactment, and every 2 years thereafter, report to
Congress concerning the status of smart grid deployments nation-
wide and any regulatory or government barriers to continued
deployment. The report shall provide the current 'status and pros-
pects of smart: grid development, including information on tech-
nology penetration, communications network capabilities, costs, and
obstacles. It may include recommendations for State and Federal
policies or actions helpful to facilitate the transition to a smart
grid. To the extent appropriate, it should take a regional perspec-
tive. In preparing this report, the Secretary shall solicit advice
and contributions from the Smart Grid Advisory Committee created
in section 1303; from other involved Federal agencies including
but not limited to the Federal Energy Regulatory Commission
("Commission"). the National Institute of Standards and Technology
(`Institute"), and the Department of Homeland Security; and from
other stakeholder groups not already represented on the Smart
Grid Advisory Committee.
15 USC 17:383. SEC.1303.SMART GRID ADVISORY COMMITTEE AND SMART GRID TASH
FORCE.
(a)SMART GRID ADvisor<v CoiwmvrEE.-
August 11, 2008 --Final 127 EISA Standards Manual
PUBLIC LAW 110-140—DEC. 19, 2007 121 STAT. 1785
(.1) ESTABLISHMENT.—The Secretary shall establish, within Deadline.
90 clays of enactment of this Part, a Smart Grid Advisory
Committee (either as an independent entity or as a designated
sub-part of a larger advisory committee on electricity matters).
The Smart Grid Advisory Committee shall include eight or
more members appointed by the Secretary who have sufficient
experience and expertise to represent the full range of smart
grid technologies and services, to represent both private and
non-Federal public sector stakeholders. One member shall be
appointed by the Secretary to Chair the Smart Grid Advisory
Committee.
(2)MISSION.—The mission of the Smart Grid Advisory Com-
mittee shall be to advise the Secretary, the Assistant Secretary,
and other relevant Federal officials concerning the development
of smart grid technologies, the progress of a national transition
to the use of smart-grid technologies and services, the evolution
of widely-accepted technical and practical standards and proto-
cols to allow interoperability and inter-communication among
smart-grid capable devices, and the optimum means of using
Federal incentive authority to encourage such progress.
(3)APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.—
The Federal Advisory Committee Act (5 U.S.C. App.) shall
apply to the Smart Grid Advisory Committee.
(b).&MART GRID TASK FORCE.—
(1) ESTABLISHMENT.—The Assistant Secretary of the Office Deadline.
of Electricity Delivery and Energy Reliability shall establish,
within 90 days of enactment of this Part, a Smart Grid Task
Force composed of designated employees from the various divi-
sions of that office who have responsibilities related to the
transition to smart-grid technologies and practices. The Assist-
ant Secretary or his designee shall be identified as the Director
of the Smart Grid Task Force. The Chairman of the Federal
Energy Regulatory Commission and the Director of the National
institute of Standards and Technology shall each designate
at least one employee to participate oilthe Smart Grid Task
Force. Other members may come from other agencies at the
invitation of the Assistant Secretary or the nomination of the
head of such other agency. The Smart Grid Task Force shall,
«ithout disrupting the work of the Divisions or Offices from
which its members are drawn, provide an identifiable Federal
entity to embody the Federal role in the national transition
toNvard development and use of smart grid technologies.
(2) MISSION.—The mission of the Smart Grid Task Force
shall be to insure awareness, coordination and integration of
the diverse activities of the Office and elsewhere in the Federal
Government related to smart-grid technologies and practices,
including but not limited to: smart grid research and develop-
ment; development of widely accepted smart-grid standards
and protocols; the relationship of smart-grid technologies and
practices to electric utility regulation; the relationship of smart-
grid technologies and practices to infrastructure development,
system reliability and security; and the relationship of smart
grid technologes and practices to other facets of electricity
supply, demand, transmission, distribution, and policy. The
Smart Grid Task Force shall collaborate with the Smart Grid
Advisory Committee and other Federal agencies and offices.
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121 STAY 1786 PUBLIC LAW 110-140—DEC. 19, 2007
The Smart Grid`Task Force shall meet at the call of its Director
as necessary to accomplish its mission.
(c) AUTHORIZATION.—There are authorized to be appropriated
for the purposes of this section such suns as are necessary to
the Secretary to support the operations of the Smart Grid-Advisory
Committee and Smart Grid Task Force for each of fiscal years
2008 through 2020.
42 USG 17394. SEC.1304.SRIART GRID TECHNOLOGY RESEARCH,DEVELOPMENT,ANTI)
DEMONSTItATION.
(a) PowER GRID DmITAI, INFORMATION TECH,NOLOm,.—The Sec-
retary, in consultation with the Federal Energy Regulatory Commis-
sion and other appropriate agencies, electric utilities; the States,
and other stakeholders, shall carry out a program—
(1) to develop advanced 'techniques for measuring peak
load reductions and energy-efficiency savings from smart
metering, demand response, distributed generation, and elec-
tricity storage systems;
(2) to investigate means for demand response, distributed
generation,and storage to provide ancillary services;
(3) to conduct research to advance the use of wide-area
measurement and control networks, including data mining, vis-
ualization, advanced computing, and secure and dependable
communications in a highly-distributed environment;
(4) to test new reliability technologies, including those con-
cerning communications network capabilities, in a grid control
room environment against a representative set of local outage
and wide area blackout scenarios;
(5) to identify communications network capacity needed
to implement advanced technologies.
(6) to investigate the feasibility of a transition to time-
of-use and real-time electricity pricing;
(7) to develop algorithms for use in electric transmission
system software applications;
(8)to promote the use of underutilized electricity generation
capacity in any substitution of electricity for liquid fuels in
the transportation system of the United States; and
(9) in consultation with the Federal Energy Regulatory
Commission, to propose interconnection protocols to enable elec-
tric utilities to access electricity stored in vehicles to help
meet peak demand loads.
(b)SMART GRID Iv'EcIONA.L DEMONSTRATION INITIATIVE.-
(1) IN GENERAL.—The Secretary shall establish a smart
grid regional demonstration initiative (referred to in this sub-
section as the "Initiative) composed of demonstration projects
specifically focused on advanced technologies for use in power
grid sensing, communications, analysis, and power flow control.
The Secretary shall seek to leverage existing smart grid deploy-
ments.
(2)GOALS.—The goals of the Initiative shall be—
(A) to demonstrate the potential benefits of con-
centrated investments in advanced grid technologies on
a regional grid;
(13) to facilitate the commercial transition from the
current power transmission and distribution system tech-
nologies to advanced technologies;
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PUBLIC LAW 110-140—DEC. 19, 2007 121 STAT. 1.787
(C) to facilitate the integration. of advanced tech-
nologies in existing electric networks to improve system
performance,power flow control, and reliability;
(D) to demonstrate protocols and standards that allow
for the measurement and validation of the energy savings
and fossil fuel emission reductions associated with the
installation and use of energy efficiency and demand
response technologies and practices;and
(E) to investigate differences in each region and regu-
latory environment regarding best practices in imple-
menting smart grid technologies.
(3)DEMONSTRATION PROJECTS.—
(A) IN GENERAL.—In carrying out the initiative, the
Secretary shall carry out smart grid demonstration projects
in up to 5 electricity control areas, including rural areas
and at least 1 area in which the majority of generation
and transmission assets are controlled by a tax-exempt
entity.
(B) COOPERATION.—A demonstration project under
subparagraph (A) shall be carried out in cooperation with
the electric utility that owns the grid facilities in the elec-
tricity control area in which the demonstration project is
carried out.
(C) FEDERAL SHARE OF COST OF TECHNOLOGY INVEST-
MENTS.—The Secretary shall provide to an electric utility
described in Subparagraph (B) financial assistance for use
in paying an amount equal to not'more than 50 percent
of the cost of qualifying advanced grid technology invest-
ments made by the electric utility to carry out a demonstra-
tion project.
(D) INELIGIRILITY FOR GRANTS.—No person or entity -
participating in any demonstration project conducted under
this subsection shall be eligible for grants under section
1306 for otherwise qualifying investments made as part
of that demonstration project.
(c) AUTHORIZATION OF APPROPRIATIONS.-There are authorized
to be appropriated—
(1) to carry out subsection (a), such sums as are necessary
for each of fiscal years 2008 through 2012;and
(2) to carry out subsection (b), $.100.000,000 for each of
fiscal years 2008 through 2012.
SEC.1305.SMART GRID INITEROPERAQILITY FRAMEWORK. 15 USC 14SS:5.
(a) INTEROPERARTLITY FRAMFMtORK.—The Director of the
National Institute of Standards and 'Technology shall have primary
responsibility to coordinate the development of a framework that
includes protocols and model standards for information manage-
ment to achieve interoperability of smart grid devices and systems.
Such protocols and standards shall further align policy, business,
and technology approaches in a manner that would enable all
electric resources, including demand-side resources, to contribute
to an efficient, reliable electricity network. In developing such proto-
cols and standards—
(1) the Director shall seek input and cooperation from
the Commission, OEDER and its Smart Grid Task Force, the
Smart Grid Advisory Committee. other relevant Federal and
State agencies; and
August 11, 2008--Final 130 EISA Standards Manual
M. STAT. 1788 PUBLIC LAW 110-140—DEC. 19, 2007
(2) the Director shall also solicit input and cooperation
from private entities interested in such protocols and standards,
including but not limited to the Gridwise Architecture Council,
the International Electrical and Electronics Engineers, the
National Electric Reliability Organization recognized by the
Federal Energy Regulatory Commission, and [National Elec-
trical Manufacturer's Association.
(b) SCOPE OF FRAMEWORK.—The framework developed under
subsection (a) shall be flexible, uniform and technology neutral,
including but not limited to_technologies for managing smart grid
information, and designed—
(1) to accommodate traditional, centralized generation and
transmission resources and consumer distributed resources,
including distributed generation, renewable generation, energy
storage; energy efficiency, and demand response and enabling
devices and systems;
(2) to be flexible to incorporate—
(A)regional and organizational differences; and
(B) technological innovations;
(3) to consider the use of voluntary uniform standards
for certain classes of mass-produced electric appliances and
equipment for homes and businesses that enable customers;
at their election and consistent with applicable State and Fed-
eral laws, and are manufactured with the ability to respond
tc electric grid emergencies and demand response signals by
curtailing all, or a portion of, the electrical power consumed
by the appliances or equipment in response to an emergency
or demand response signal,including through—
(A) load reduction to reduce total electrical demand;
(B) adjustment of load to provide grid ancillary serv-
ices; and
(C) in the event of a reliability crisis that threatens
an outage, short-term load shedding to help preserve the
stability of the grid;and
(4) such voluntary standards should incorporate appro-
priate manufacturer lead time.
(C) TIMING OF FRAMEWORK DEVELOPMENT.—The Institute shall
begin work pursuant to this section within 60 days of enactment.
The Institute shall provide and publish an initial report on progress
toward recommended or Consensus standards and protocols within
1 year after enactment, further reports at such times as develop-
ments warrant in the judgment of the Institute, and a final report
When the Institute determines that the work is completed or that
a Federal role is no longer necessary.
(d) STANDARDS FOR INTEROPERABILITY IN FFDFRAI. JURISDIC-
TION.—At any time after the Institute's work has led to sufficient
consensus in the Commission's judgment, the Commission shall
institute a rulemalcing proceeding to adopt such standards and
protocols as may be necessary to insure smart-grid functionality
and interoperability in interstate transmission of electric power,
and regional and wholesale electricity markets.
(e) AU'PiIORIZATION.There are authorized to be appropriated
for the purposes of this section $5,000,000 to the I nstitute to support
the activities required by this subsection fo' each of fiscal years
2008 through 2012.
August 11, 2008 -- Final 131 EISA Standards Manual
PUBLIC LAW 110-140—DEC. 19, 2007 121 STAT. 1789
SEC. 1306. FEDERAL AATCHING FUND FOR SMART GLAD INVESTMENT 42 USC 173K
COSTS.
(a) MATCHING FUND.--Thc Secretary shall establish a Smart
Grid Investment Matching Grant Program to provide reimburse-
ment of one-fifth (20 percent) of qualifying Smart Grid investments.
(b) QUALIFYING INVESTMENTS.—Qualifying Smart Grid invest-
ments may include any of the following made on or after the
date of enactment of this Act:
(1) In the case of appliances covered for purposes of estab-
lishing energy conservation standards under part B of title
III of the Energy Policy and Conservation Act of 1975 (42
U.S.C. 6291 et seq.), the documented expenditures incurred
by a manufacturer of such appliances associated with pur-
chasing or designing, creating the ability to manufacture, and
manufacturing and installing for one calendar year, internal
devices that allow the appliance to engage in Smart Grid func-
tions.
(2) In the case of specialized electricity-using equipment,
including motors and drivers, installed in industrial or commer-
cial applications, the documented expenditures incurred by its
owner or its manufacturer oh installing devices or modifying
that equipment to engage in Smart Grid functions.
(3) In the case of transmission and distribution equipment
fitted with monitoring and communications devices to enable
smart grid functions, the documented expenditures incurred
by the electric utility to purchase and install such monitoring
and communications devices.
(4) In the case of metering devices, sensors, control devices,
and other devices integrated with arid attached to an electric
utility system or retail distributor or marketer or electricity
that are capable of engaging in Smart Grid functions; the
documented expenditures incurred by the electric utility, dis-
tributor, or marketer and its customers to purchase and install
such devices.
(5)In the case of software that enables devices or computers
to engage in Smart Grid functions, the documented purchase
costs of the software.
(6) In the case of entities that operate or coordinate oper-
ations of regional electric grids, the documented expenditures
for purchasing and installing such equipment that allows Smart
Grid functions to operate and be combined or coordinated
among multiple electric utilities and between that region and
other regions.
(7) In the case of persons or entities other than electric
utilities owning and operating a distributed electricity gener-
ator, the documented expenditures of enabling that generator
to he monitored, controlled, or otherwise integrated into grid
operations and electricity flows on the grid utilizing Smart
Grid functions.
(8) In the case of electric or hybrid-electric vehicles, the
documented expenses for devices that allow the vehicle to
engage in.Smart Grid functions (but not the costs of electricity
storage for the vehicle).
(9) The documented expenditures related to purchasing
and implementing Smart Grid functions in such other cases
as the Secretary shall identify. In making such grants, the
Secretary shall seek to reward innovation and early adaptation,
August 11, 2008 -- Final 132 EISA Standards Manual
121 STAT. 1790 PUBLIC LAW 110-140—DEC. 19, 2007
even if success is not complete, rather than deployment of
proven and commercially viable technologies.
(C) INVESTMENTS NOT INCLUDED.—Qualifying Smart Grid
investments do not include any of the following:
(1) Investments or expenditures for Smart Grid tech-
nologies, devices, or equipment that are eligible for specific
tax credits or deductions Linder the Internal Revenue Code,
as amended.
(2) Expenditures for electricity generation, transmission,
or distribution infrastructure or equipment not directly related
to enabling Smart Grid functions.
(3) After the final date for State consideration of the Smart
Grid Information Standard under section 1307 (paragraph (17)
of section 111(d) of the Public Utility Regulatory Policies Act
of 1978), an investment that is not in compliance with such
standard.
(4) After the development and publication by the Institute
of protocols and model standards for interoperability of smart
grid devices and technologies, an investment that fails to incor-
porate any of such protocols or model standards.
(5) Expenditw-es for physical interconnection of generators
or other devices to the grid except those that are directly
related to enabling Smart Grid functions.
(6) Expenditures for ongoing salaries,benefits, or personnel
costs not incurred in the initial installation, training, or start
up of smart grid functions.
(7)Expenditures for travel, lodging, meals or other personal
costs.
(8) Ongoing or routine operation, billing, customer rela
tions, security,and maintenance expenditures.
(9) Such other expenditures that the Secretary determines
not to be Qualifying Smart Grid Investments by reason of
the lack of the ability to perform Smart Grid functions or
lack of direct relationship to Smart Grid functions.
(dl SMART GRID FUNCTIONS.—The term "smart grid functions"
means any of the following:
(1) The ability to develop, store, send and receive digital
information concerning electricity use, costs, prices, time of
use, nature of use, storage, or other information relevant to
device, grid, or utility operations, to or from or by means
of the electric utility system, through one or a combination
of devices and technologies.
(2) The ability to develop, store, send and receive digital
information concerning electricity use, costs, prices, time of
use, nature of use, storage, or other information relevant to
device, grid, or utility operations to or from a computer or
other control device.
(3) The ability to measure or monitor electricity use as
a function of time of clay, power quality characteristics such
as voltage level, current, cycles per second, or source or type
of generation and to store, synthesize or report that information
by digital means.
(4) The, ability to sense and localize disruptions or changes
in power flows on the grid and communicate such information
instantaneously and automatically for purposes of enabling
automatic protective responses to sustain reliability and secu-
rity of grid operations.
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PUBLIC LAW 110-140—DEC. 19, 2007 121. STAT. 1791
1 (5) The ability to detect, prevent, communicate with regard
to, respond to, or recover from system security threats,
including cyber-security threats and terrorism, using digital
information, media, and devices.
(6) The ability of any appliance or machine to respond
to such signals, measurements, or communications automati-
cally or in a manner programmed by its owner or operator
without independent human intervention.
(7) The ability to use digital information to operate
functionalities on the electric utility grid that were previously
eleccro-mechanical or manual.
(8)The ability to use digital controls to manage and modify
electricity demand; enable congestion management, assist in
voltage control, provide operating reserves, and provide fre-
quency regulation.
'M Such other functions as the Secretary may identify .
as being necessary or useful to the operation of a Smart Grid.
(e)The Secretary shall— Procedures.
11) establish and publish in the Federal Register, within Federal Register,
1 year after the enactment of this Act procedures by which publication.
applicants who have made qualifying Smart Grid investments headline.
can seek and obtain reimbursement of one-fifth of their docu-
mented expenditures;
(2) establish procedures to ensure that there is no duplica-
tion or multiple reimbursement for the same investment or
tests, that the rein.bursemzat gees to the party making the
actual expenditures for Qualifying Smart Grid Investments,
and that the grants made have significant effect in encouraging
and facilitating the development of a smart grid;
(3)maintain public records of reimbursements made, recipi- Records.
ents, and qualifying Smart Grid investments which have
received reimbursements;
(4) establish procedures to provide, in cases deemed by
the Secretary to be wart-anted, advance payment of moneys
up to the full amount of the projected eventual reimbursement,
to creditworthy applicants whose ability to make Qualifying
Smart Grid Investments may be hindered by lack of initial
capital, in lieu of any later reimbursement for which that
applicant qualifies, and subject to full return of the advance
payment in the event that the Qualifying Smart Grid invest-
ment is not made;and
(5) have and exercise the discretion to deny grants for
investments that do not qualifv in the reasonable judgment
of the Secretary.
(I) AuTrloR(zATiOA OF APPROPRIATIONS.—There are authorized
to be appropriated to the Secretary such sums as are necessary
for the administration of this section and the grants to be made
pursuant to this section for fiscal years 2008 through 2012.
SEC. 1307.STATE,,CONSIDERATION OF SMART GRID.
(a) Section 111(d) of the Public Utility Regulatory Policies Act
of 1.978 (16 U.S.C. 2621(d)) is amended by adding at the end
the following
"(161 CON51Fi E.RATION OF ShIART GRID TNXTSTMENTS.—
"(A) IN GENERA(,.—Each State shall consider requiring
that, prior to undertaking investments in nonadvanced grid
technologies. an electric utility of the State demonstrate
August 11, 2008--Final 134 EISA Standards Manual
121 STAT. 1792 PUBLIC I.AW 110-140—DEC. 19, 2007
to the State that the electric utility considered an invest-
ment in a qualified smart grid system based on appropriate
factors, including—
"(i) total costs;
"(ii)cost-effectiveness;
"(iii)improved reliability;
"(iv)security;
"(v)system performance; and
"(vi)societal benefit.
"(I3) RATE RECOVERY.—Each State shall consider
authorizing each electric utility of the State to recover
from ratepayers any capital, operating expenditure, or
other costs of the electric utility relating to the deployment
of a qualified smart grid system, including a reasonable
rate of return an the capital expenditures of the electric
utility for the deployment of the qualified smart grid
system.
"(C) OBSOLETE EQUIPMENT.—Each State shall consider
authorizing any electric utility or other party of the State
to deploy a qualified smart grid system to recover in a
timely manner the remaining book-value costs of any equip-
ment rendered obsolete by the deployment of the qualified
smart grid system, based on the remaining depreciable
life of the obsolete equipment.
"(17)SMART GRID INFORMATION.—
,A)S.n'NDARD.—All electricity purchasers shall be pro-
vided direct access, in written or electronic machine-read-
able form as appropriate, to information from their elec-
tricity provider as provided in subparagraph(13).
"(I3) INFORMATION.—Information provided under this
section, to the extent practicable,shall include:
"(i) PRICES.—Purchasers and other interested per-
sons shall be provided with information on—
"(I) time-based electricity prices in the whole-
sale electricity market; and
"(11)time-based electricity retail prices or rates
that are available to the purchasers.
"(6) USAGF,.—Purchasers shall be provided with
the number of electricity units, expressed in kwh, pur-
chased by them.
"(iii) INTERVALS AND PROJECTIONS.—Updates of
information on prices and usage shall be offered on
not less than a daily basis, shall include hourly price
an(] use information, where available, and shall include
a day-ahead projection of such price information to
the extent available.
"(iv) SOURCES.—Purchasers and other interested
persons shall be provided annually with written
information on the sources of the power provided by
the utility, to the extent it can be determined, by
type of generation, including greenhouse gas emissions
associated with each type of generation, for intervals
during which such information is available of a cost-
effective basis.
"(C) ACCESS.—Purchasers shall be able to access their
own information at any time through the Internet and
on other means of communication elected by that utility
August 11, 2008--Final 135 EISA Standards Manual
PUBLIC LAW 1.10-140—DEC. 19, 2007 121 STAT. 1793
for Smart Grid applications. Other interested persons shall
be able to access information not specific to any purchaser
through the Internet. Information specific to any purchaser
shall be provided solely to that purchaser.".
(b)COMPLIANCE.—
(I) TLME LIMITATIONS.—Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended
by adding the following at the end thereof:
"(6)(A) Not later than 1. year after the enactment of this Deadlines.
paragraph, each State regulatory authority (with respect to
each electric utility for which it has ratemaking authority)
and each nonregulated utility shall cornmence the consideration
referred to in section 111, or set a hearing date for consider-
ation, with respect to the standards established by paragraphs
(17)through(18)of section 111(d).
"(13) Not later than 2 years after the date of the enactment
of this paragraph. each State regulatory authority (with respect
to each electric utility for which it has ratemaking authority),,
and each nonregulated electric utility, shall complete the consid-
eration, and shall make the determination, referred to in section
III with respect to each standard established by paragraphs
(17)through (18)of section 11.1(d).".
(2) FAIL1rRE TO COMPLY.LSection 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is
amended by adding the following at the end:
"In the case of the standards established by paragraphs (16)
through (19) of section 111(d), the reference contained in this sub-
section to the date of enactment of this Act shall be deemed to
be a reference to the date of,enactment of such paragraphs.".
(3) PRIOR STATE ACTIONS.—Section 112(d) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(d))
is amended by inserting "and paragraphs (17) through (1.8)"
before"of section 111(d)".
SEC. 1308. STUDS OF THE EFFECT OF PRIVATE WIRE LAWS ON THE
DEVELOPI4IENT OF COMBINED HEAT AND POWER FACILI•
TIES.
(a)STUDl'.—
(1) IN GENERAL.—The Secretary, in consultation with the
States and other appropriate entities, shall conduct a study
of the laws (including regulations) affecting the siting of pri-
vately owned electric distribution wires on and across public
rights-of-way.
(2) REQUIRITMENTS—The study under paragraph (1) shall
inClude—
(A)an evaluation of—
(i)the purposes of the laws; and
(it) the effect the laws have on the development
of combined heat and power facilities;
(B) a determination of whether a change in the laws
would have any operating; reliability, cost, or other impacts
on electric utilities and the customers of the electric utili-
ties; and
(C)an assessment of-
0) whether privately owned electric distribution
wires would result in duplicative facilities;and
August 11. 2008 --Final 136 EISA Standards Manual
1.21 STAT. 1794 PUBLIC LAW 110-140—DEC. 19, 2007
(ii) whether duplicative facilities are necessary or
desirable.
(b) REPORT.—Not later than 1 year after the date of enactment
of this Act, the Secretary shall submit to Congress a report that
describes the results of the study conducted under subsection (a).
SEC. 1309. DOE STUDY OF SECURITY ATTRIBUTES OF SMART CHID
SYSTEMS.
Deadline. (a) DOE S,rui)Y—The Secretary shall, within 18 months after
Reports. the date of enactment of this Act, submit a report to Congress
that provides a quantitative assessment and determination of the
existing and potential impacts of the deployment of Smart Grid
systems on improving the security of the Nation's electricity infra-
structure and operating capability. The report shall include but
not be limited to specific recommendations on each of the following:
(1)How smart grid systems can help in making the Nation's
electricity system less vulnerable to disruptions due to inten-
tional acts against the system.
(2) How smart grid systems can help in restoring the
integrity of the Nation's electricity system subsequent to disrup-
tions.
(3)How smart grid systems can facilitate nationwide, inter-
operable emergency communications and control of the Nation's
electricity system during times of localized, regional, or nation-
wide emergency.
(4) What risks must be taken into account that smart
grid systems may, if not carefully created and managed, create
vulnerability to security threats of any sort, and 'how such
risks may be mitigated.
(b)CONSULTATION.—The Secretary shall consult with other Fed-
eral agencies in the development of the report under this section,
including but not Limited to the Secretary of Homeland Security,
the Federal Energy Regulatory Commission, and the Electric Reli-
abiLity Organization certified by the Commission under section
215(c) of the Federal Power Act (16 U.S.C. 824o) as added by
section 1211 of the Energy Policy Act. of 2005 (Public Law 109-
58; 119 Stat. 941).
August 11, 2008 --Final 137 EISA Standards Manual
Appendix C
Excerpts of the
Energy Independence and Security Act of 2007
Industrial Waste Energy Sections
Sections 451 and 371 to 374
}
Subtitle D—Industrial Energy Efficiency
SEC.461.INDUSTRIAL ENERGY EFFICIENCY.
(a) IN GENERAL.-Title III of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6291 et seq!) is amended by inserting after
part D the following:
"PART E—INDUSTRIAL ENERGY EFFICIENCY
"SEC.371.DEFINITIONS. 42 USC 6341.
"In this part:
"(1.) AMUNISTRATOR.—The tern 'Administrator' means the
Administrator of the Environmental Protection Agency.
`(2) COMBINED HEAT AND PowEtt.—The term 'combined heat
and power system'means a facility that—
"(A) simultaneously and efficiently produces useful
thermal energy and electricity;and
"(13) recovers not less than 60 percent of the energy
valve in the fuel (on a higher-heating-value basis) in the
form of useful thermal energy and electricity.
"(3) NET EXCESS POWER.—The term `net excess power'
means_ for any facility, recoverable waste energy recovered
in the form of electricity in quantities exceeding the total
consumption of electricity at the specific time of generation
on the site at which the facility is located.
"(4) PROJECT.—The term `project' means a recoverable
waste energy project or a combined heat and power system
project.
August 11, 2008 --Final 138 EISA Standards Manual
121 STAT. 1624 PUBLIC LAW 110-140—DEC. 19, 2007 .
"(5) RECOVERABLE WASTF ENERGY.—The term 'recoverable
waste energy' means waste energy from which electricity or
useful thermal energy may be recovered through modification
of an existing facility or addition of a new facility.
"(6) RFGISTRY.—The term 'Registry' means the Registry
of Recoverable Waste Energy Sources established under section
372(d).
I'M USEFUL THERMAL, ENERGY.—The term 'useful thermal
energy'means energy—
"(A) in the form of direct heat, steam, hot water, or
other thermal form that is used in production and beneficial
measures for heating, cooling, humidity control, process
use, or other valid thermal end-use energy requirements;
and
"(B) for which fuel or electricity would otherwise he
consumed.
"(8) WASTE ENERGY.—The tern 'waste energy` means—
"(A) exhaust heat or flared gas from any industrial
process;
"(B) waste gas or industrial tail gas that would other-
wise be flared, incinerated, or vented;
"(C)a pressure drop in any gas, excluding any pressure
drop to a condenser that subsequently vents the resulting
heat; and
"(D) such other forms of waste energy as the Adminis-
trator may determine
"(9) OTHER TERMS.—The terms 'electric utility', 'nonregu-
lated electric utility', 'State regulated electric utility', and other
terms have the meanings given those terms in title I of the
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2611
et seq.).
42 USC 6342. "SEC.372.SURVEY AND REGISTRY.
"(a)RECOVERABLE WASTE ENERGY INVENTORY PROGRAM.—
"(1) IN GENERAL.—The Administrator, in cooperation with
the Secretary and State energy offices, shall establish a recover-
able waste energy inventory program.
"(2)SURVEY.—The program shall include—
"(A) an ongoing survey of all major industrial and
large commercial combustion sources in the United States
(as defined by the Administrator) and the sites at which
the sources are located; and
"(B) a review of each source for the quantity and
quality of waste energy produced at the source.
"(b)CRITERLA.—
Deadline. "(1) IN GENERAL.—Not later than 270 days after the date
Publication. of enactment of the Energy Independence and Security Act
Rep lotions. of 2007, the Administrator shall publish a.rule for establishing
criteria for including sites in the Registry.
"(2)INCLUSIONS.—The criteria shall include—
"(A) a requirement, that, to be included in the Registry,
a project at the site shall be determined to be economically
feasible by virtue of offering a payback of invested costs
not later than 5 years after the date of first full project
operation (including incentives offered Linder this part);
"(B) standards to ensure that projects proposed for
inclusion in the Registry are not developed or used for
August 11, 2008 --Final 139 EISA Standards Manual
PUBLIC LAW 110-1.40—DEC. 19, 2007 121 STAT. 1625
the primary purpose of making sales of excess electric
power under the regulatory provisions of this part; and
"(C) procedures for contesting the listing of any source
or site on the Registry by any State, utility, or other
interested person.
"(c,I TECHNICAL SUPPORT.—On the request of the owner or oper-
ator of a source or site included in the Registry, this Secretary
shall—
"(1) provide to owners or operators of combustion sources
technical support; and
"(2) offer partial funding (in an amount equal to not more
than one-half of total costs) for feasibility studies to confirm
whether or not investment in recovery of waste energy or
combined heat and power at a source would offer a payback
period of 5 years or less.
"(d) REGISTRY.—
. "(1)ESTABLISHMENT.—
"(A) IN GENERAL.—Not later than 1 year after the Deadline.
date of enactment of the Energy Independence and Security
Act of 2007, the Administrator shall establish a Registry
of Recoverable Waste Energy Sources, and sites on which
the sources are located, that meet the criteria established
under subsection(b).
"(B) UPDATES; AVAILABILITY.—The Administrator
shall—
"(i) update the Registry on a regular basis; and
"Gi) make the Registry available to the public on Public
the website of the Environmental Protection Agency. information.
"(C) CONTESTING LISTING.—Any State, electric utility, website.
or other interested person may contest the listing of any
source or site by submitting a petition to the Administrator.
"(2)CONTENTS.—
`'(A) IN GENERAL.—The Administrator shall register
and include on the Registry all sites meeting the criteria
established under subsection(b).
"(I3) QUANTITY OF RECOVERABLE WASTE ENERGY.—The
Administrator shall—
"(i) calculate the totall quantities of potentially
recoverable waste energy from sources at the sites,
nationally and by State; and
"(ii)make public—
,,(I) the total quantities described in clause
Wl; and
"(II) information on the criteria pollutant and
greenhouse gas emissions savings that might be
achieved with recovery of the waste energy from
all sources and sites listed on the Registry.
"(3)AVAILABILITY OF IiNFORDIATION.—
"(A) IN GENERAL.The Administrator shall notify Notification.
owners or operators of recoverable waste energy sources
and sites listed on the Registry prior to publishing the
listing.
AB)DETAILED QUANTITATIVE INFORMATION.—
"(i) IN GENERAL.—Except as provided in clause
(ii), the owner or operator of a source at a site may
August 11, 2008-- Final 140 EISA Standards Manual
121. STAT. 1626 'PUBLIC LAW 11.0-140—DEC. 19, 2007
elect to have detailed quantitative information con-
cerning the site not made public by notifying the
Administrator of the election.
"(ii) LIMITED AVA FLAB ILITY.—The information shall
be made available to—
"(I)the applicable State energy office; and
"(II) any utility requested to support recovery
of waste energy from the source pursuant to the
incentives provided under section 374.
"(iii) STATE TOTALS.—Information-concerning the
site shall be included in the total quantity of recover-
able waste energy for a State unless there are fewer
than 3 sites in the State.
"(4)REMOVAL OF PROJECTS FROM REGISTRY.—
"(A) IN GENERAL.—Subject to subparagraph (B), as a
project achieves successful recovery of waste energy, the
Administrator shall—
"(0 remove the related sites or sources from the
Registry;and
"(ii) designate the removed projects as eligible for
incentives under section 374.
"(B) LIMITATION.—No project shall be removed from
the Registry without the consent of the owner or operator
of the project if—
"0) the owner or operator has submitted a petition
under section 374:and
'10i) the petition has not been acted on or denied.
"(5) INELIGIBILITY OF CERTAIN SOURCES.—The Adminis-
trator shall not list any source constructed after the date of
the enactment of the Energy Independence and Security Act
of 2001, on the Registry if the Administrator determines that
the source—
"(A) was developed for the primary purpose of malting
sales of excess electric power under the regulatory provi-
sions of this part; or
"(B) does not capture at least 60 percent of the total
energy value of the fuels used (on a higher-heating-value
basis) in the farm of useful thermal energy, electricity;
mechanical energy, chemical output, or any combination
thereof.
"(e)SELF-CERTIFICATION.—
"(1)IN GENERAL.—Subject to any procediu'es that are estab-
lished by the Administrator, an owner, operator, or third-party
developer of a recoverable waste energy project that qualifies
under standards established by the Administrator may self-
certify the sites or sources of the owner, operator, or developer
to the Administrator for inclusion in the Registry.
"(2) REVIEW AND APPROVAL.—To prevent a fraudulent
listing, a site or source shall be included on the Registry only
if the Administrator reviews and approves the self-certification.
"(1) NEW FACILITIES.—As a new energy-consuming industrial
facility is developed after the date of enactment of the Energy
Independence and Security Act of 2007. to the extent the facility
may constitute a site with recoverable waste energy that may
qualify for inclusion on the Registry, the Administrator may elect
to include the facility on the Registry, at the request Of the owner,
operator, or developer of the facility, on a conditional basis with
August 11, 2008--Final 141 EISA Standards Manual
PUBLIC LAW 110-140—DEC. 19, 2007 121 STAT. 1627
the site to be removed from the Reg-istry if the development ceases
or the site fails to qualify for listing under this part.
"(g) OPTIMUM MEANS OF RECOVERY.—For each site listed in
the Registry, at the request of the owner or operator of the site,
the Administrator shall offer, in cooperation Mth Clean Energy
Application Centers operated by the Secretary of Energy, sugges-
tions for optimum means of recovery of value from waste energy
stream in the form of electricity, useful thermal energy, or other
energy-related products.
"(h) REVISION.—Each annual report of a State under section
548(a) of the National Energy Conservation Policy Act (42 U.S.C.
8258(a)) shall include the results of the survey for the State under
this section.
"(i) AUTHOMATION OF At PRoPItIATIONs.—There are authorized
to be appropriated to—
"(1) the Administrator to create and maintain the Registry
and services authorized by this section, $1.,000,000 for each
of fiscal years 2008 through 201.2; and
"(2)the Secretary—
"(A) to assist site or source owners and operators in
determining the feasibility of projects authorized by this
section, $2,000,000 for each of fiscal years 2008 through
2012; and
"(B) to provide funding for State energy office functions
under this section,$5,000,000.
"SEC. 373. WASTE ENERGY RECOVERY INCENTrvE GRANT P1tOGRA6Y. 42 USC 6343.
"(a) ESTABLISHMENT.—The Secretary shall establish in the
Department of Energy a waste energy recovery incentive grant
program to provide incentive grants to—
,,(I) owners and operators of projects that successfully
produce electricity or incremental useful thermal energy from
waste energy recovery;
"(2) utilities purchasing or distributing the electricity; and
"(3) States that have achieved 80 percent or more of
recoverable waste heat recovery opportunities.
"(b)GRANTS TO PROJECTS AND UTILITIES.—
"(I) IN GENERAL.—The Secretary shall make grants under
this section
"(A) to the owners er operators of waste energy
recovery projects;and
"(13) in the case of excess power purchased or trans-
mitted by a electric utility, to the utility.
"(2) PROOF.—Grants may only be made under this section
on receipt of proof of waste energy, recovery or excess electricity
generation, or both, from the project in a form prescribed by
the Secretary.
"(3)EXCESS ELECTRIC ENERGY.—
"(A)IN GENERAL.—In the Case of waste energy recovery,
a grant under this section shall be made at the rate of
$10 per megawatt hour of documented electricity produced
from recoverable waste energy (or by prevention of waste
energy in the case of a new facility) by the project during
the first 3 calendar years of production, beginning on or
after the date of enactment of the Energy Independence
and Security Act of 2007.
August 11, 2008 -- Final 142 EISA Standards Manual
121 STAT. 1628 PUBLIC LAW 110-140—DEC. 1.9, 2007
`(B) UTILITIES.—If the project produces net excess
power and an electric utility purchases or transmits the
excess power, SO percent of so much of the grant as is
attributable to, the net excess power shall be paid to the
electric utility purchasing or transporting the net excess
power.
"(4)USEFUL THERMAL ENERGY.—In the case of waste energy
recovery that produces useful thermal energy that is used for
a purpose different from that for which the project is principally
designed, a grant under this section shall be made to the
owner or operator of the waste energy recovery project at the
rate of $10 for each 3,412,000 BtLIS of the excess thermal
energy used for the different purpose.
"(c) GRANTS TO STATES.—In the case of any State that has
achieved 80 percent or more of waste heat recovery opportunities
identified by the Secretary under this part, the Administrator shall
make a 1-time grant to Che State in an amount of not more than
$1,000 per megawatt of waste-lieat capacity recovered (or a thermal
equivalent) to support State-level programs to identify and achieve
additional energy efficiency.
Regulations. "(d)ELIGHBiLITY.—The Secretary shall—
"(1) establish rules and guidelines to establish eligibility
for grants under subsection(b);
"(2) publicize the availability of the grant programs known
to owners or operators of recoverable waste energy sources
and sites listed on.the Registry;and
"(3) award grants under the program on the basis of the
merits of each project in recovering or preventing waste energy
throughout the United States on an impartial, objective, and
not unduly discriminatory basis.
"(e) LIMITATION.—The Secretary shall not award grants to any
person for a combined heat and power project or a waste heat
recovery project that qualifies for specific Federal tax incentives
for combined heat and power or for waste heat recovery.
"(f)AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to the Secretary—
`(1) to make grants to projects and utilities under sub-
section(b)-
"(A) $1.00,000,000 for fiscal year 2008 and$200,000,000
for each of fiscal pears 2009 through 2012;and
"(13) such additional amounts for fiscal year 2008 and
each fiscal year thereafter as may be necessary for adminis-
tration of the waste energy recovery incentive grant pro-
gram; and
"(2) to make grants to States under subsection (b),
$10,000,000 for each of fiscal years 2008 through 2012, to
remain available until expended.
42 USC 6344. "SEC. 374. ADDITIONAL INCENTIVES FOR RECOVERY, USE, AND
PREVENTION OF INDUSTRUkI,WASTE(ENERGY. _
"(a) CONS 11)LRATION OF STANDARD.—
Deadline. "(1) IN GFNERAL..Not later than 180 (lays after the receipt
NotiF_catiou. by a State regulatory authority (with respect to each electric
utility for which the authority has ratemaking authority), or
nom-egulated electric utility, of a request from a project sponsor
or owner or operator, the State regulatory authority or nonregu-
lated electric utiLty shall—
August 11, 2008-- Final 143 EISA Standards Manual
PUBLIC LAW 110-140—DEC. 19, 2007 121 STAT. 1629
"(A) provide public notice and conduct a hearing
respecting the standard established by subsection (b); and
"(B) on the basis of the hearing, consider and make
a determination whether or not it is appropriate to imple-
ment the standard to carry out the purposes of this part.
"(2) RELATIONSHIP TO STATE LAW.—For purposes of any
determination under paragraph (1)and any review of the deter-
mination in any court, the purposes of this section supplement
otherwise applicable State law.
"(3)NONADOPTION OF STANDARD.—Nothing in this part pro-
hibits any State regulatory authority or nonregulated electric
utility from making any determination that it is not appropriate
to adopt any standard described in paragraph (1), pursuant
to authority under otherwise applicable State law.
"(b) STANDARD FOR SALES OF EXCESS POWER.—For purposes
of this section, the standard referred to in subsection (a) shall
provide that an owner or operator of a waste energy recovery
project identified on the Registry that generates net excess power-
shall he eligible to benefit from at least 1 of the options described
in subsection (c) for disposal of the net excess power in accordance
with the rate conditions and limitations described in subsection
(d).
"(e) OPTIONS.—The options referred to in subsection (b) are
as follows:
"(1) SALE OF NET EXCESS POWER TO UTILITY.—The electric
utility shall purchase tile net excess power from the owner
or operator of the eligible waste energy recovery project during
the operation of the project under a contract entered into for
that purpose.
"(2) TRANSPORT BY UTILITY FOR DIRECT SALF. TO THIRD
PARTY.—The electric utility shall transmit the net excess power
on behalf of the project owner or operator to up to 3 separate
locations on the system of the utility for direct sale by the
owner or operator to third parties at those locations.
"(3) TRANSPORT OVER PRIVATE TRANSMISSION LINES.—The
State and the electric utility shall permit, and shall waive
or modify such laws as would otherwise prohibit, the construc-
tion and operation of private electric wires constructed, owned,
and operated by the project owner or operator, to transport
the power to up to 3 purchasers within a 3-mite radius of
the project, allowing the wires to use or cross public rights-
of-way, without subjecting the project to regulation as a public
utility; and according the wires the same treatment for safety,
zoning, land use, and other legal privileges as apply or would
apply to the wires of the utility,except that—
"(A) there shall be no grant of any power of eminent
domain to take or cross private property for the wires;
and
"(B) the wires shall be physically segregated and not
interconnected with any portion of the system of the utility,
except on the customer side of the revenue meter of the
utility and in a manner that precludes any possible export
of the electricity onto the utility system, or disruption
of the system.
"(4) AGREED ON I.TERNATIVES.—The utility and the owner
or operator of the project may reach agreement on any alternate
arrangement and payments or rates associated with the
August 11, 2008-- Final 144 EISA Standards Manual
121 STAT. 1630 PUBLIC LAW 110-140—DEC. 19, 2007
arrangement that is mutually satisfactory and in accord with
State law.
"(d)RATE CONDITIONS AND CRITERIA.—
"(1)DEFINITIONS--In this subsection:
"(A)PER UNIT DISTRIBUTION cOS'rs.—The term 'per unit
distribution costs' means (in kilowatt hours) the quotient
obtained by dividing—
"(i) the depreciated book-value distribution system
costs of a utility;by
"(ii) the volume of utility electricity sales or trans-
mission during the previous year at the distribution
level.
"(13) PER UNIT DISTRIBUTION MARGIN.-The term `per
unit distribution margin'means—
"(i) in the case of a State-regulated electric utility,
a per-unit gross pretax profit equal to the product
obtained by multiplying—
"(1) the State-approved percentage rate of
return for the utility for distribution system assets;
by
"(II)the per unit distribution costs; and
"(ii) in the case of a nonregulated utility, a per
unit contribution to net revenues determined multi-
plying—
AI) the percentage (but not less than 10 per-
cent)obtained by da:ndin;—
"(aa) the amount of any net revenue pay-
ment or contribution to the owners or sub-
scribers of the nonregulated utility during the
prior year;by
"(bb) the gross revenues of the utility
during the prior year to obtain a percentage;
by,
"(II)the per unit distribution costs.
`(C) PER UNIT TRANSMISSION COSTS.-The term `per
unit transmission costs' means the total cost of those trans-
mission services purchased or provided by a utility on
a per-kilowatt-hour basis as included in the retail rate
of the utility.
"(2) OPTIONS.—The options described in paragraphs(1) and
(2) in subsection (c) shall be offered under purchase and trans-
port rate conditions that reflect the rate components defined
under paragraph (1) as applicable under the circumstances
described in paragraph(3).
"(3)APPLICABLE RATES.—
"(A) BATES APPLICABLE '1'0 SALE OF NET EXCESS
POwER.—
"(i) IN GENERAL_Sales made by a project owner
or operator of a facility under the option described
in subsection (.c)(1) shall be paid for on a per kilowatt
hour basis that shall equal the full undiscounted retail
rate paid to the utility for power purchased by the
facility minus per unit distribution costs, that applies
to the type of utility purchasing the power.
"(ii) VOLT'AGES EXCEEDING 25 KILOVOLTS.—If the
net excess power is made available for purchase at
voltages that must he transformed to or from voltages
August 11, 2008--Final 145 EISA Standards Manual
PUBLIC LAW 110-140—DEC. 19, 2007 121 STAT. 1631
exceeding 25 kilovolts to be available for resale by
the utility, the purchase price shall further be reduced
by per unit transmission costs.
"(B) RATES APPLICABLE TO TRANSPORT BY UTILITY FOR
DIRECT SALE TO THIRD PARTIES.—
"N) IN GENERAL.—Transportation by utilities of
power on behalf of the owner or operator of a project
under the option described in subsection (0(2) shad
incur a transportation rate that shall equal the per
unit distribution costs and per unit distribution
margin, that applies to the type of utility transporting
the power.
"(ii) VOLTAGES EXCEEDING 26 IOLOVOLTS.-If the
net excess power is made available for transportation
at voltages that. must be transformed to or from
voltages exceeding 25 kilovolts to be transported to
the designated 'third-party purchasers, the transport
rate shall further be increased by per unit transmission
costs.
"(iii) STATES WITH COMPETITIVE RETAIL MARKETS
FOR ELECTRICITY.—In a State with a competitive retail
market for electricity, the applicable transportation
rate for similar transportation shall be applied in tieu
of any rate calculated under this paragraph.
"(4)LIMITATIONS.—
"(A) IN GENERAL.—Any rate established for sale or
transportation tinder this section shall—
"(0 be modified over time with changes in the
underlying costs or rates of the electric utility; and
Aii) reflect the same time-sensitivity and billing
periods as are established in the retail sales or
transportation rates offered by the utility.
"(B) UNM'ATION.—No utility shall be required to pur-
chase or transport a quantity of net excess power under
this section that exceeds the available capacity of the wires,
meter, or other equipment of the electric utility serving
the site unless the owner or operator of the project agrees
to pay necessary and reasonable upgrade costs.
"(e) PROCEDURAL REQU1RF.MENTS FOR CONSIDERATION AND
DETERMINATION.—
"(1)PUBLIC NOTICE AND HEARING.-
"(A)IN GENERAL.—The consideration referred to in sub-
section (a) shall be made after public notice and hearing.
"(B) ADMINISTRATION.—The determination referred to
in subsection (a)shall be—
`(i) in writing;
"(ii) based on findings included in the determina-
tion and on the evidence presented at the hearing;
and
"(iii)available to the public.
`(2) INTERVENTION BY ADMINISTILtTOR.-The Administrator
may intervene as a matter of right in a proceeding conducted
under this section—
"(A)to calculate—
`(0 the energy and emissions likely to be saved
by electing to adopt 1 or more of the options; and
August 11, 2008--Final 146 EISA Standards Manual
121 STAT. 1632 PUBLIC LAW 110-140—DEC. 19, 2007
"(ii) the costs and benefits to ratepayers and the
utility;and
"(B) to advocate for the waste-energy recovery oppor-
tunity.
"(3)PROCEDURES.—
"(.A) IN GENERAL.—Except as otherwise provided in
paragraphs (1) and(2), the procedures for the consideration
and determination referred to in subsection (a) shall be
the procedures established by the State regulatory
authority or the nonregulated electric utility.
"(B) MULTIPLE PROJECTS.—If there is more than 1
project seeking consideration simultaneously in connection
with the same utility, the proceeding may encompass all
such projects, if full attention is paid to individual cir-
cumstances and merits and an individual judgment is
reached with respect to each project.
"(f)IMPLEMENTATION.—
"(1) IN GENERAL.—The State regulatory authority (with
respect to each electric utility for which the authority has
ratemaking authority) or nonregulated electric utility may, to
the extent consistent with otherwise applicable State law—
"(A) implement the standard determined under this
section;or
"(B)decline to implement any such standard.
"(2) NONIMPLEMENTATION Or STANDARD.—
"(A) 117 CENERAL.—If a State regulatory authority(with
respect to each electric utility for which the authority has
ratemaking authority) or nonregulated electric utility,
declines to implement any standard established by this
section, the authority or nonregulated electric utility shall
state in writing the reasons for declining to.implement
the standard.
"(B) AVAILABILITY TO PUBLIC.—The statement of rea-
sons shall be available to the public.
"(C)ANNUAL REPORT.—The Administrator shall include
in an annual report submitted to Congress a description
of the lost opportunities for waste-heat recovery from the
project described in subparagraph (A), specifically identi-
fying the utility and stating the quantity of lost energy
and emissions savings calculated.
"(D) NEw PETITION.—If a State regulatory authority
(with respect to each electric utility for which the authority
has ratemaking authority) or nonregulated electric utility
declines to implement the standard established by this
section, the project sponsor may submit a new petition
under this section with respect to the project at any time
after the date that is 2 years after the date on which
the State regulatory authority or nonregulated utility
declined to implement the standard.
August 11`, 2008--Final 147 EISA Standards Manual
Utilities
EXHIBIT "B"
}
Ci ly o� electric-stormwater-wastewater water
700 Wood Street
Fort Collins Fo Box580
Fort Collins,CO 80522
970.221.6700
970.221.6619-fax
970.224.6003-Too
utilities@fcgov.com
fcgov.com/utilities
Date: December 16, 2008
To: Mayor and City Council Members
Through: Darin Atteberry, City Manager
Brian Janonis, Utilities Executive Director
From: Steve Catanach, Light & Power Manager
Re: New Public Utility Regulatory Policies Act provisions
On December 19, 2007 the President signed the Energy Independence and Security Act of 2007
(the "Act') into law. The statute adds four new federal standards to the Public Utility Regulatory
Policies Act ("PURPA") and an additional fifth standard that is not labeled as a PURPA standard
but must be considered in a similar fashion. Because the City of Fort Collins Electric Utility has
retail sales in excess of 500 million kilowatt-hours, it is subject to these provisions. PURPA, as
amended, requires the City of take formal action to consider the adoption of the standards, but
does not require the adoption of the standards.
The City is already in the process of considering several of the standards required by the Act
through its earlier policy planning and has already begun implementation of some related
programs. This memo is intended to advise the City Council and to document for the public
record that City staff has commenced working to evaluate the feasibility of modifying or
adopting new standards or programs in accordance with PUPRA requirements. A formal City
Council hearing to consider the matters listed above will be required after completion of this
staff review. It is the intention of staff to provide the Mayor and City Council with
recommendations to be scheduled for the required public hearing prior to December 19, 2009.
The recent amendments to the Act require state regulatory authorities and certain non-regulated
utilities to assess the implementation of standards relating to the following:
• Affected parties must consider a new standard related to integrated resource
planning. There is no time limit specified in PURPA for consideration or
implementation of this standard.
• Within one year of enactment (December 19, 2007), affected parties are required
to have commenced consideration of the rate design modifications to promote
energy efficiency investments standard or have set a hearing date for such
consideration. This process must be completed within two years of enactment
(December 19, 2009).
I
City of
ort Co ins
• Affected parties must consider a new standard related to smart grid
investments. There is no time limit specified in PURPA for consideration or
implementation of this standard;
• Within one year of enactment (December 19, 2007), affected parties are required
to have commenced consideration of the smart grid information standard or
have set a hearing date for such consideration. This process must be completed
within two years of enactment(December 19, 2009).
• The Act requires non-regulated utilities to consider a fifth standard entitled
"Incentives for Recovery, Use, and Prevention of Industrial Waste Energy".
This standard is intended to encourage"waste energy recovery" projects that
generate "net excess power." The Act requires that within six months of
receiving a request from a project sponsor, owner, or operator, a non-regulated
electric utility is to provide public notice and conduct a hearing on the standard,
and, based on the hearing, consider and make a determination on whether or not
to implement the standard. To date, the City of Fort Collins Electric Utility has
not received such a request.
As background, the City of Fort Collins formerly considered and adopted an Integrated Resource
Planning standard with Resolution number 93-150 on October 19, 1993 in compliance with the
National Energy Policy Act of 1992. Also, the City of Fort Collins recently considered five
other PURPA standards required by the Energy Policy Act of 2005 with Resolution number
2007-066 on July 17, 2007.
Several documents related to the Act have been posted on American Public Power Association's
website. These materials may be accessed at
http://www.appanet.org/legislative/index.cfm?ItemNutnber=15912.
2
EXHIBIT "C"
"Staff Report"
Fact Sheets Regarding Consideration of the Public Utility Regulatory
Policies Act ("PURPA") of 1978
As Amended by the Energy Independence and Security Act of 2007
("EISA")
FACT SHEET
Legislation: Energy Independence and Security Act of 2007 ("EISA")
Requirement: Consideration of PURPA Standards (Appendix A)
Standard: Integrated Resource Planning(EISA sec. 532)
"Each electric utility shall—
(A) integrate energy efficiency resources into utility, State, and
regional plans; and
(B) adopt policies establishing cost-effective energy efficiency as a
priority resource.
Coal: To integrate energy efficiency into utility plans and adopting
policies that encourage cost-effective energy efficiency.
Definition: The tern "energy efficiency" generally refers to efforts that allow
consumers to use less energy without altering their behavior, for
example, through increased deployment of newer technologies or
replacement of existing energy-consuming devices with newer
versions that accomplish the same tasks as earlier versions while
consuming less energy.
Status: The City's 2009 Energy Policy and Fort Collins Utilities programs
and rates meet this standard. Platte River Power Authority's
policies and practices also meet this standard.
Key Points:
• Platte River Power Authority is a governmental entity created by four member
municipalities, including Fort Collins, for the purpose of generating and transmitting
electric energy to the four members. ("PRPA") is the wholesale electric provider for the
City of Fort Collins. PRPA files a formal Integrated Resource Plan ("IRP") every five
years with Western Area Power Administration. Updates to the plan are reported
annually. The last IRP was completed in 2007 and provides information on supply
resources (including renewable energy) and energy efficiency (demand side) resources.
The planning process balances rate impacts, reliability and environmental effects with
both technical analysis and requires public review of the resulting plans.
• Reduced loads associated with efficiency resources are integrated into PRPA's overall
system load forecast. Each year, the net forecast is adjusted to reflect projected load
reductions due to efficiency programs. Energy requirements of the member
municipalities are anticipated to increase by approximately 1.6% annually over the next
10 years, including energy efficiency resources. Without energy efficiency resources,
energy consumption would grow about 2.0% annually (25% more). Over$5 million has
been invested by PRPA in energy efficiency measures since 2002 and annual
expenditures for 2009 to 2011 are expected to average about S2 million per year. The
fiscal impacts of PRPA's integrated resource plan for the City of Fort Collins and its
electric ratepayers are incorporated into PRPA's wholesale rate and are ultimately
incorporated into Fort Collins' electric rate studies.
• PRPA's 2007 IRP included the following action items: (1) addition of a new natural-
gas-fired peaking resource, (2) expansion of energy efficiency resources, (3) addition of
new renewable energy supply, and (4) monitoring of developments in regional generation
and transmission resources to ensure a position in any new options of benefit to PRPA
and its members.
• The City of Fort Collins adopted an updated Energy Supply Policy in January 2009 that
includes specific objectives for reliability, energy efficiency and renewable energy. The
2009 Energy Policy increased the energy efficiency goal to provide annual energy
reduction of 1.5 percent of the previous three-year average total consumption through
energy efficiency programs. The Energy Policy specifically targets efficiency and
conservation as the top priority resource for the utility
(litip:!hrww.fc��ov.com/electric/energy policy_. hl )•
• The City's electric utility is a non-profit organization which has no throughput
disincentive to energy efficiency. Rate adjustments are submitted on an annual basis to
City Council to recover energy efficiency-related costs. In 2004, Council adopted a 1%
rate increase to fund energy efficiency programs and another 1% increase for renewable
energy purchases. A rate increase of 1.8% percent is requested in the 2009-2010 budget
to fund the new goals for energy efficiency.
• As part of its 2009 Energy Policy, the City established an objective to continuously
reduce energy use through verifiable energy efficiency programs, independent of
population growth and economic trends. One metric related to this objective is to achieve
annual energy efficiency and conservation program savings of at least 1.5% of annual
energy use (based on a three year average history).
• Current energy efficiency programs include:
Residential Energy Efficiency Programs and Services
Residential Energy Efficiency Programs and Services
Program -1 Descri lion
Refrigerator and Freezer Recycling Rebate, in-home pickup and comprehensive recycling of unwanted
Program refrigerators and freezers
Residential Lighting Program Discounted compact fluorescent light bulbs through local retailers
(offered in Platte River member cities), LED holiday lighting
component
Clothes Washer Rebate Program Rebate for purchase of ENERGY STAR clothes washer
Dishwasher Rebate Program Rebate for purchase of ENERGY STAR dishwasher
ZILCH Zero interest loans for energy saving home improvements
REACH Free home weatherization based on income eligibility
Water Heater Load Management Radio frequency control of electric water heaters for coincident peak
demand savings. Bill credit to customers.
AC Load Management Radio frequency control of residential air conditioners for coincident
peak demand savings. Bill credit to customers.
Home Performance with ENERGY Contractor training and support for whole-house approach to improve
STAR energy performance of existing homes rebates available
Energy Score Support for home energy ratings
Solar PV Rebates $2 per watt for solar photovoltaic installations
ENERGY STAR New Homes Collaborative northern Colorado program for energy efficient new
home construction
Education and Awareness Energy efficiency education and awareness activities include The
Power to Save campaign, What to Look for in a New Home, the
Utilities website, Environmental Program Series and various
community events.
Commercial Energy Efficiency Programs and Services
Commercial Encray Efficiency Programs and Services
Program j Description
Li htenUP Program Incentives for li glb tin retrofits
Electric Efficiency Program Incentives for projects that reduce summer peak demand or annual
;electricity consumption
Cooling Rebate Program Rebates for high efficiency air conditioners
Integrated Design Assistance Program Tunding and expertise for integrated design of energy efficient new
buildings, whole building and prescriptive paths.
CRI Load Management !Radio signal for customer control of coincident peak demand
Technical Assistance and Energy 'Free energy assessments to help customers implement energy
Assessments ;efficency projects
Elect ri-Connect Provides online access to interval clecuic data for large commercial
;and industrial customers___
Keep Current Electronic newsletter, web information resource and "Ask an Expert'
tool
Education and Awareness Energy efficiency education and awareness activities include The
Power to Save campaign, ihe,Utilities cvebsite, the Business
Environmental Program Series and commercial accounts luncheons.
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FACT SHEET
Legislation: Energy Independence and Security Act of 2007 ("EISA")
Requirement: Consideration of PURPA Standards (Appendix A)
Standard: Rate Design Modifications to Promote Energy Efficiency
Investments (EISA sec. 532)
"(A) In General—The rates to be charged by any electric utility
shall—
(i) align utility incentives with the delivery of cost-effective energy
efficiency; and
(ii) promote energy efficiency investments.
Goal: To address a recently developed concern that standard rate-making
practices may not encourage, or could even discourage, utilities
from adopting energy conservation measures
Status: This standard is directed primarily toward investor-owned utilities
and because the City's electric utility is not investor-owned but is
instead a non-profit organization that has no throughput
disincentive to energy efficiency, the concern noted above does not
apply. However, the City's electric utility programs, rates and
practices comply with the intent of this standard.
Key Points:
• This particular PURPA standard contains some policy options and requires each
nonregulated utility to consider the following options:
(a) removing the throughput incentive and other regulatory and management
disincentives to energy efficiency;
(b) providing utility incentives for the successful management of energy
efficiency programs;
(c) including the impact on adoption of energy efficiency as one of the goals of
retail rate design, recognizing that energy efficiency must be balanced with other
objectives;
(d) adopting rate designs that encourage energy efficiency for each customer
class;
(e) allowing timely recovery of energy efficiency-related costs; and
(I) offering home energy audits, offering demand response, publicizing the
financial and environmental benefits associated with making home energy
efficiency improvements, and educating homeowners about.all existing Federal
and State incentives, including the availability of low-cost loans, that make
energy efficiency improvements more affordable.
• With regard to (a) above, Fort Collins Utilities has not modified its rate structure in
order to promote energy efficiency programs, unlike many unregulated utilities. Instead, a
surcharge was added to the City's electric rate structure to promote energy efficiency and
renewable energy in 2004. This surcharge has been incorporated into the rates each year
since 2004.
• Fort Collins Utilities is a non-profit organization which has no throughput disincentive
to energy efficiency. Rate adjustments are submitted on an annual tfasis to City Council
to recover energy efficiency-related costs. In 2004, Council adopted a 1% rate increase to
fund energy efficiency programs and another 1% increase for renewable energy
purchases. A rate increase of 1.8% percent is requested in the 2009-2010 budget to fund
the new goals for energy efficiency.
• With regard to (b) above, this option applies to investor-owned utilities and other types
of utilities operating in order to make a profit. As mentioned above, the City's electric
utility is a non-profit organization. Also, rate adjustments are submitted on an annual
basis to City Council and are adjusted, as appropriate, in order to recover energy
efficiency programs and practices.
• With regard to (c) above, the City's electric utility includes the impact on adoption of
energy efficiency as one of the goals of its retail rate designs by making rate adjustments
on an annual basis and adjusted, as appropriate, in order to recover the costs of energy
efficiency programs and practices.
• With regard to (d) above, Fort Collins Utilities has taken significant measures to modify
its rate design for large commercial customers to encourage energy efficiency by
accurately and directly passing through all wholesale cost based charges, particularly the
monthly peak demand charges, to each individual customer. The cuiTent rate design and
Council-approved rates applied to large commercial customers fairly allocate costs of
service and provide incentive for such customers to directly receive the benefits of
reduced demand and increase energy efficiency.
Fort Collins Utilities plans to conduct rate studies related to appropriate rate design for
its non-commercial customers, if necessary funding is obtained to complete the advanced
metering infrastructure project ("AMI"). If funded, AMI will allow the City's electric
utility to obtain customer usage information necessary to conduct rate studies and to
design more appropriate rates for its non-commercial customers.
• With regard to (e) above, the City's electric utility makes rate adjustments on an annual
basis and adjusts, as appropriate, in order to recover the costs of energy efficiency
programs and practices.
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• With regard to (t) above, the City's electric utility offers those programs and options
described in the tables on page 3 above. Energy efficiency program results from 2002
through 2008 reduced 2009 electricity consumption by over 39,000 megawatt hours at an
estimated cost of$0.013 kilowatt hour. Our purchased power costs for 2008 were $0.04
per/kWh. The reduced electric consumption reduced greenhouse gas emissions in 2009
from these programs was over 31,000 short tons. See
http:/ www.fc2ov.com'electric/ener(,,y policv.php ). Fort Collins Utilities publications
promote energy efficiency and renewable energy and include information on available
incentives from Federal and State agencies (http://www.fci,,ov.com/conservationi'res-
index.php ).
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FACT SHEET
Legislation: Energy Independence and Security Act of 2007 ("EISA")
Requirement: Consideration of PURPA Standards (Appendix A)
Standard: Consideration of Smart Grid Investments (EISA sec. 13.07)
"(A) In General—Each State shall consider requiring that, prior to
undertaking investments in nonadvanced grid technologies, an
electric utility of the State demonstrate to the State that the electric
utility considered an investment in a qualified smart grid system
based on appropriate factors, including—
(a) total costs;
(b) Cost-effectiveness;
(c) improved reliability;
(d) security;
(e) system performance; and
(0 societal benefit.
Goal: To require nonregulated utilities such as the City's electric utility
to consider making investments in advanced grid technologies
prior to undertaking nonadvanced grid technologies based on
appropriate factors.
Definition: "Smart grid" refers to a system that incorporates a range of
technical options that provide certain enumerated functions or
values.
Status: The City's electric utility routinely considers and invests in smart
grid or advanced grid technologies. The City's electric utility
considers all available technologies in its investment decisions and
therefore complies with this standard.
Key Points:
• This standard contains other language as follows:
(B) Rate Recovery— Each State shall consider authorizing each electric utility of the
State to recover from ratepayers any capital, operating expenditure, or other costs of
the electric utility relating to the deployment of a qualified smart grid system,
including a reasonable rate of return on the capital expenditures of the electric utility
for the deployment of the qualified smart grid system.
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(C) Obsolete Equipment — Each State shall consider authorizing any electric utility or
other party of the State to deploy a qualified smart grid system to recover in a timely
mariner the remaining book-value costs of any equipment rendered obsolete by the
deployment of the qualified smart grid system, based on the remaining depreciable
life of the obsolete equipment.
• The City's electric utility has had a number of initiatives in the smart grid arena for the
past decade. The City's electric utility reliability indices reached a new peak in 2008 with
an availability of 99.9981%. All City substations are remotely monitored and controlled
with state-of-the art equipment.
Also, the City's electric utility is promoting distributed generation, an advanced grid
technology, through its active participation as one of nine project cooperative study sites
in the Department of Energy's Renewable and Distributed System Integration (RDSI)
cooperative study project. The purpose of this $1 1.1 million project is to demonstrate
monitoring, aggregation, distribution system integration dispatch, and verification of
distributed generation, renewable energy, and demand response resources of over 3.5
megawatts representing 20 to 30 percent peak loading on two distribution system circuits.
• Another advance grid technology undertaken by the City's electric utility is the
installation of remotely supervised pad-mount switchgear. This project is planned to take
place in 2010 on the distribution network to reduce outage time.
• Also, the City's electric utility has submitted an application for S 15.6 million in
stimulus funding for AMI (sec page 5 above). Deployment includes two-way
communication between the meters, collectors and the master station, consumption and
demand meter reads, load profiling, meter status indications, remote disconnect, in-home
displays (IHD), in-home thermostats (IHT), the capability to interface with air
conditioning and water heater control switches through a home area network (HAN), a
meter data management system (MDMS), power quality monitoring, and voltage
monitoring. If AMI goes forward, the City's electric utility customers will have an
abundance of accessible information regarding their energy usage available via HANs.
AMI will encourage consumers to maintain an interest in their reduction of energy use,
provide the City's electric utility with better outage management and provide load profile
data.
• Smart grid investments are submitted through the budget process and rate adjustments
are included in that process. A 11 percent rate increase has been submitted for approval
to the City Council in order to fund the Advanced Metering Infrastructure project.
• The City's electric utility is a non-profit organization and therefore the incentive to
recover book-value of obsolete equipment that is desirable for investor-owned utilities
does not apply.
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FACT SHEET
Legislation: Energy Independence and Security Act of 2007 ("EISA")
Requirement: Consideration of PURPA Standards (Appendix A)
Standard: Consideration of Smart Grid Information Standard [EISA sec.
1307 (A) & (B)]
"(A) Standard—All electricity purchasers shall be provided direct
access, in written or electric machine-readable form as appropriate,
to information from their electricity provider as provided in
subparagraph (B).
(B) lnfonnation — Information provided under this section, to the
extent practicable, shall include;
(i) Prices— Purchasers and other interested parties shall be
provided with information on-
(1) time-based electricity prices in the wholesale electricity
market; and
(11) time-based electricity retail prices or rates that are
available to the purchasers.
(ii) Usage— Purchasers shall be provided with the number of
electricity units, expressed in kwh, purchased by them.
(iii) Intervals and Projections —Updates of information on
prices and usage shall be offered on not less than a daily basis,
shall include hourly price and use information, where available,
and shall include a day-ahead projection of such price information
to the extent available.
(iv) Sources— Purchasers and other interested parties shall be
provided annually with written information on the sources of the
power provided by the utility, to the extent it can be determined, by
type of generation, including greenhouse gas emissions associated
with each type of generation, for intervals during which such
informnation is available on a cost effective basis.
Goal: To require that electricity purchasers be provided with direct
access to information concerning pricing, usage, intervals, and
sources (including generation type and greenhouse gas emissions),
either in writing or in electronic form.
Definition: . "Smart grid" refers to a system that incorporates a range of
technical options that provide certain enumerated functions or
values.
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Status: The City's electric utility and PRPA provide smart grid
information related to electric rates, usages, available interval data
and power sources at a relatively small incremental cost as part of
regular customer billing, publications on websites and other
educational publications. The City will include information
regarding PRPA's resource mix and the associated greenhouse gas
emissions from each resource on its website.
Key Points:
• The City's electric utility does not generate electricity. Wholesale electricity prices are
available on PRPA's website. All of the wholesale power transactions in Northern
Colorado are done on a bilateral basis since no power exchange exists for real time
wholesale power transactions. Information regarding retail electric rates charged to the
City's electric utility customers is available on the City's website and in the Municipal
Code.
• All Fort Collins Utilities customers are able to access their account history and billing
information through the City's website. Fort Collins Utilities billing information includes
information for each electric utility customer that includes the number of electricity units,
expressed in kilowatt hours, purchased by them. In addition, most commercial customers
are able to access their daily load profiles on 15-minute intervals through the City's MV-
WEB website. Residential customer monthly bills include a 13 month history of electric
use. Large commercial and industrial customers are able to access a PRPA website that
shows, on an hourly basis, the projected load, actual load and estimated monthly
coincident peak. This allows customers on the E300 and E400 rate structures to manage
their coincident peak demand and the charges related to that demand.
• The sources of electricity used by PRPA to supply its municipal customers, including
the City of Fort Collins, are described in PRPA's annual report. This annual report is
posted on PRPA's website. The percentage of total energy generated by each source is
provided in the report.
• Fort Collins Utilities staff provides annual updates to the Electric Board and to City
Council regarding greenhouse gas emissions associated with electric usage in the City.
Further, the City plans to include information regarding PRPA's resource mix and the
associated greenhouse gas emissions from each resource on its website and future updates
to the Electric Board and City Council will also include this information.
• The Utility also provides detailed source information in communications to participants
in the Green Energy Program, a voluntary, subscription-based renewable energy
program. Information regard the mix of sources making up the Green Energy Program,
and the balance of the non-renewable electricity mix, is provided in an annual letter and
on the City's website (http:%hvww_fcgov.com/conservation/green-ener�!v.php ).
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FACT SHEET
Legislation: Energy Independence and Security Act of 2007 ("EISA")
Requirement: Consideration of a Non-PURP-A Standard, Section 374 (Appendix
A)
Standard: Section 374 Standard: Additional Incentive for Recovery, Use and
Prevention of Industrial Waste Energy
Goal: To encourage "waste energy recovery" projects that generate"net
excess power". Examples of"waste energy" include exhaust heat
or flared gas from any industrial process and waste gas or
industrial tail gas that would otherwise be flared, incinerated or
vented. The term "net excess power" is defined as generation from
these facilities"of electricity in quantities exceeding the total
consumption of electricity at the specific time of generation on the
site at which the facility is located."
Status: This standard only goes into effect in the event the City's electric
utility receives a request from a project sponsor or owner or
operator. As of the date of publication, the City's electric utility
has received no such request.
Key Points:
• The City's electric utility has received no request from a waste energy recovery project
sponsor. In the event it does, the electric utility will comply with the standards and
procedures required by this standard.
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